What is the standard form contract? What are the differences between standard form contract and general trading conditions in concluding contracts in Vietnam?
- What is the standard form contract in Vietnam?
- What are the general trading conditions in concluding contracts in Vietnam?
- What are the differences between standard form contract and general trading conditions in concluding contracts in Vietnam?
- Vietnam: When will standard form contracts must be registered?
What is the standard form contract in Vietnam?
Pursuant to the provisions of Article 405 of the Civil Code 2015, the following provisions:
Standard form contracts
1. Standard form contract means a contract containing terms and conditions which are prepared by a party based on a standard form requiring the other party to reply within a reasonable period of time. If the offeree accepts, it shall be deemed to have accepted the entire contract provided by the offeror.
The standard form contract must be public in order for the parties to know or should know the contents of the contract.
Procedures for announcement of standard form contract shall comply with regulations of law.
2. Where a standard form contract contains terms and conditions which are unclear, such terms and conditions shall be interpreted in a manner favoring the offeree.
3. Where a standard form contract contains provisions exempting the party providing such standard form contract from liability, or increasing the liability of or waiving legitimate interests of the other party, such provisions shall be ineffective, unless otherwise agreed.
Thus, standard form contract means a contract containing terms and conditions which are prepared by a party based on a standard form requiring the other party to reply within a reasonable period of time. If the offeree accepts, it shall be deemed to have accepted the entire contract provided by the offeror.
What is the standard form contract? What are the differences between standard form contract and general trading conditions in concluding contracts in Vietnam? (Image from the internet)
What are the general trading conditions in concluding contracts in Vietnam?
Pursuant to the provisions of Article 406 of the Civil Code 2015, the following provisions:
General trading conditions in concluding contracts
1. General trading conditions are stable terms announced by a party to apply to the offeree; if the offeree accepts the contract is then deemed to accept these terms.
2. General trading conditions shall be effective only with the parties as long as these conditions have been publicly in order for the parties to know or should know them.
The procedures for announcement of general trading conditions shall comply with regulations of law.
3. The general trading conditions must ensure equality between the parties. If the general trading conditions contain provisions on discharge of liability from the party giving the general trading conditions, increase of responsibility or removal of the legitimate interests of the other party, these provisions do not take effect, unless otherwise agreed.
Accordingly, general trading conditions are stable terms announced by a party to apply to the offeree; if the offeree accepts the contract is then deemed to accept these terms.
What are the differences between standard form contract and general trading conditions in concluding contracts in Vietnam?
It can be seen that the general transaction conditions and the standard form contract in the conclusion of the contract are the contents prepared by one party and will become the content of the contract if accepted by the other party to facilitate the transaction. Contract combination becomes convenient and easy, saving time and cost for the parties when entering into the contract.
General transaction conditions and standard form contracts are highly stable and standardized, helping the parties to enter into contracts quickly and minimizing possible disputes.
Although general trading conditions and standard form contracts in entering into similar contracts are similar in terms of use, there are differences between the two concepts as follows:
- General transaction conditions are expressed in the form of rules and regulations expressing the unilateral will of the requesting party to agree, remain unchanged and have already prepared terms.
- Standard form contract is essentially an agreement between the parties. The standard form contracts have the most obvious characteristics through the will of the two parties which is still expressed in the contract, the common will is expressed through the mutual desire of both parties to enter into the contractual relationship has been accepted.
However, the will of the offeree is only expressed in the decision to enter or not to enter into the contract. The agreement in the transaction is only a formality.
Vietnam: When will standard form contracts must be registered?
Pursuant to the List of essential goods and services for which contract forms and general transaction conditions must be registered promulgated together with Decision 02/2012/QD-TTg as amended and supplemented by Decision 35/2015/QD-TTg, List of essential goods and services for which contract forms and general transaction conditions must be registered is as follows:
- Supply of electricity for residential consumption
- Supply of tap water
- Pay television
- Terrestrial fixed telephone services
- Terrestrial mobile information services (form of payment: postpaid service)
- Terrestrial mobile information services (form of payment: prepay service)
- Internet access services
- Air transport of passengers
- Rail transport of passengers
- Purchase and sale of apartments, daily-life services provided by apartment-managing units
- Life insurance
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