Is an authorization contract still valid when one party to the contract has died in Vietnam?

Is an authorization contract still valid when one party to the contract has died in Vietnam?

This is a very interesting situation I saw on a lawyer's Facebook, a real-life situation. I also don't have a specific answer. Question: Regarding authorization contracts, when one party dies, what is handling for the authorization contract?

Reply:

Article 562 of the 2015 Civil Code stipulates:

Authorization contract means an agreement between parties whereby an attorney has the obligation to perform an act in the name of a principal. The principal shall only be required to pay remuneration if so agreed or so provided by law.

Article 372 of the 2015 Civil Code also has provisions on termination of civil obligations as follows:

8. The obligor being a natural person dies, or the obligor being a juridical person ceases to exist, and the obligation must be performed by that particular natural person or juridical person;

9. The obligee being a natural person dies and the right to demand does not form part of the bequeathed estate, or the obligee being a juridical person ceases to exist and the right to demand is not able to be transferred to another juridical person;

...

At the same time, Article 382 of the 2015 Civil Code also stipulates:

Where parties have agreed or the law provides that an obligation must be performed by a particular obligor, when such natural person dies or such juridical person ceases to exist, the obligation shall terminate.

Thus, based on the above regulations in Vietnam, for authorization contracts, when one party to the contract dies, the contract will also terminate.

Is an authorization contract still valid when one party to the contract has died in Vietnam? (Image from the Internet)

What should I do when I want to unilaterally terminate authorization contract in Vietnam?

Please ask the following question: What should I do when I want to unilaterally terminate authorization contract in Vietnam? Hope to receive a response soon. Sincerely thank!

Reply:

Authorization contract means an agreement between parties whereby an attorney has the obligation to perform an act in the name of a principal. The principal shall only be required to pay remuneration if so agreed or so provided by law.

Accordingly, Article 569 of the 2015 Civil Code has provisions on unilateral termination of performance of authorization contracts as follows:

1. Where an authorization involves payment of remuneration, the principal has the right, at any time, to terminate unilaterally the performance of the contract but must remunerate the attorney in proportion to the acts performed and compensate for damage. If the authorization does not involve payment of remuneration, the principal has the right, at any time, to terminate the performance of the contract, subject to giving reasonable prior notice to the attorney.

A principal must notify any third person in writing of the termination of the performance of the contract by the principal. If the principal fails to do so, any contract with any such third person shall remain in effect, unless such third person knows or should know of the termination of the performance of the contract.

2. Where an authorization does not involve payment of remuneration, the attorney has the right, at any time, to terminate unilaterally the performance of the contract, subject to giving reasonable prior notice to the principal. If the authorization involves payment of remuneration, the attorney has the right, at any time, to terminate unilaterally the performance of the contract and must compensate for any damage caused to the principal.

According to this regulation in Vietnam, it depends on whether you authorize remuneration or not.

What is effect of an authorization contract in case the authorization term is not specified in Vietnam?

On May 1, 2016, my husband and I signed a contract authorizing Mr. A to carry out the procedures to apply for a "certificate of house ownership" on our behalf. In the contract, the two parties do not specify the authorization period. More than two years have passed and Mr. A still has not completed the application. Now I want to transfer it to someone else (no longer asking Mr. A), what should I do? Look forward to consulting. Thank you very much!

Reply:

According to Article 563 of the 2015 Civil Code:

The duration of the authorization shall be as agreed by the parties or as provided by law. If there is no agreement and the duration is not provided by law, the authorization contract shall be effective for one year from the date on which the authorization is made.

Thus, because it has expired, the authorization contract between husband and wife and Mr. A has ended. After notifying Mr. A of this termination, he and his wife can make a new authorization contract to authorize another person to submit the application for a "certificate of house ownership".

Above is our advice on the validity of authorization contracts in cases where the authorization term is not specified. You should refer to the 2015 Civil Code in detail to clearly understand this regulation in Vietnam.

Best regards!