What is legal liability for unilateral termination of performance of authorization contracts in Vietnam?

What is legal liability for unilateral termination of performance of authorization contracts in Vietnam?

I signed a contract authorizing a friend to collect monthly room rent. However, there are some unsatisfactory issues so I want to terminate the contract. So does unilaterally terminating the authorization contract create legal liability?

Reply:

According to Article 569 of the 2015 Civil Code, it is stipulated:

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.

Thus, you have right to unilaterally terminate the above authorization contract, however, depending on each case, the legal responsibilities will be different. You need to determine whether this authorization is remunerative or not? From there, it can be compared to fulfill related obligations in Vietnam.

What is legal liability for unilateral termination of performance of authorization contracts in Vietnam? (Image from the Internet)

Do authorization contracts have a time limit in Vietnam?

According to current civil law regulations, is there a time limit for authorization contracts? That is, is there a specified expiration date?

Reply:

It can be seen that an 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.

Pursuant to Article 563 of the 2015 Civil Code, regulations on duration of authorization are as follows:

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, it depends on the agreement of the parties or as prescribed by law in Vietnam. However, if there is no agreement, the authorization contract is valid for 01 year from the date of establishment of authorization according to the above regulations.

Will authorization contracts expire after 2 years in Vietnam?

Regarding current civil law regulations, is there a time limit for authorization contracts? I heard that after 2 years of not re-authorizing, the authorization will expire?

Reply:

Pursuant to Article 563 of the 2015 Civil Code, regulations on duration of authorization are as follows:

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, it can be seen that the authorization contract is based on the principle of promoting agreement. Therefore, it depends on the agreement of the parties or as prescribed by law in Vietnam. However, if there is no agreement, the authorization contract is valid for 01 year from the date of establishment of authorization according to the above regulations.

Best regards!