If contract is canceled, will arbitration agreement be canceled in Vietnam?

If contract is canceled, will arbitration agreement be canceled in Vietnam?

I signed a contract to buy and sell goods with a company in agricultural products. We have a contract and a dispute will be resolved at the FCCA. I am the owner of an agricultural garden. Due to bad weather, I delayed delivery. Using the reason that I delayed delivery and caused damage to the company, the company canceled the contract and announced that it would sue in court.
Let me ask: Does this company have the right to cancel the contract? In addition, we have a dispute resolution agreement at the arbitration center, so when this company cancels the contract, will this arbitration agreement be canceled? Thank!

Answer:

- Pursuant to Article 423 of the 2015 Civil Code stipulates: A party has the right to cancel a contract and shall not be liable to compensate for damage in the following cases: The other party seriously violates the obligations in the contract.

Serious violation is the failure to properly perform one party's obligations to the extent that the other party fails to achieve the purpose of entering into the contract.

=> From the above regulations in Vietnam, it can be seen that purpose of the company's transaction is agricultural products but you did not deliver on time, so the company's cancellation of the contract is justified.

- Pursuant to Article 19 of the Commercial Arbitration Law 2010 stipulates: An arbitration agreement is entirely independent from the contract. Any modification, extension, cancellation, invalidation or nonperformance of the contract will not invalidate the arbitration agreement.

=> With this provision in Vietnam, the company's cancellation of the contract will not affect the arbitration agreement that you have agreed upon. Therefore, when this company announced that filing a lawsuit in court was against regulations.

Conclusion: The company has the right to cancel the contract when the purpose of the transaction is not achieved, and canceling the contract will not affect the previous arbitration agreement in Vietnam (Except in cases where the arbitration agreement is also invalid).

Above is the consultation content.

When do interim urgent measures have to be applied in arbitration proceedings in Vietnam?

Hello everyone, my company and I have traded a shipment of agricultural products and have an arbitration agreement. The payment has been made before and at the delivery date, my side has made the delivery according to regulations but I don't know. For some reason, the partner company did not receive the goods, it has been more than 10 days and still no one has come to receive the goods. Let me ask, in this case, do I have right to request the arbitration center to apply interim urgent measures to sell the above batch of goods to reduce damage? Thanks for the answer.

Answer: Pursuant to Article 49 of the Commercial Arbitration Law 2010 stipulates:

1. At the request of one of the parties, the arbitration council may apply one or more interim urgent measures to the disputing parties.

2. Interim urgent measures include:

a/ Prohibiting any change in the status of assets under dispute;

b/ Prohibiting or forcing any disputing party to commit one or more certain acts to prevent acts which adversely affect the process of arbitral proceedings;

c/ Distraining assets under dispute;

d/ Requesting preservation, storage, sale or disposal of any asset of one disputing party or all disputing parties;

e/ Requesting temporary money payment between the parties;

f/ Prohibiting transfer of the rights to assets under dispute.

=> With the above regulations in Vietnam, when you request, the arbitration center will consider applying interim urgent measures. Because the goods are agricultural products, the possibility of damage is very high, so in this case the arbitration center may apply the measure of selling these goods to prevent possible damage.

=> However, whether the arbitration center applies interim urgent measures or not in Vietnam, you still have right to request the arbitration center to apply interim urgent measures for this shipment.

Above is the consulting content.

Where can plaintiff send the lawsuit when there is an arbitration agreement in Vietnam? 

Hello everyone, let me ask if my company has signed a contract with a partner company on goods purchase and sale transactions. We have an agreement to resolve disputes by arbitration. This sales contract includes 3 stages of delivery of goods and delivery of money, specifically in stage 2, this company did not deliver money on time and when completing stage 3 of delivery, this company still promised. Therefore, my company decided to sue in arbitration. In this case, can I send the lawsuit directly to the arbitrator I choose and then notify the defendant? Ask for advice.

Answer: Pursuant to Clause 1, Article 30 and Clause 3, Article 35 of the 2010 Commercial Arbitration Law stipulates:

- When a dispute is settled at an arbitration center, the plaintiff shall file a petition with the arbitration center. When a dispute is settled by ad hoc arbitration, the plaintiff shall make a petition and send it to the defendant.

- For a dispute to be settled by ad hoc arbitration, unless otherwise agreed by the parties, within 30 days after receiving the plaintiff's petition and enclosed documents, the defendant shall send to the plaintiff and arbitrator the self-defense statement and name and address of the person whom the defendant selects as arbitrator.

=> From the above regulations in Vietnam, it shows that when your company has an arbitration agreement, you are required to send a lawsuit to the defendant, and the choice of arbitrator is chosen by the defendant and will be notified for you to know. Therefore, if you do not send a lawsuit to the defendant, it is against the regulations and in principle, the arbitrator will not accept this lawsuit.

Above is the consulting content.

Best regards!