Vietnam: A promissory note which omits any one of the basic contents shall be invalid

According to Article 53 of the Law on negotiable instruments 2005 of Vietnam, a promissory note must include the following contents:

- The words "Promissory Note" written on the front of the promissory note;

- An undertaking to make unconditional payment of a fixed sum of money;

- The period for payment;

- The place for payment;

- The name of the beneficiary being an organization or the full name in the case of the beneficiary being an individual designated by the issuer or in whose favor [the issuer] has made the request for payment of the promissory note to the order of the beneficiary or the request for payment of the promissory note to the bearer;

- The place and date of signing and issuance;

- The name of the issuer being an organization or the full name in the case of the issuer being an individual, and the address and signature of the issuer.

A promissory note which omits any one of these contents shall be invalid, except for the following cases:

- Where the place for payment is not recorded on the promissory note, the place for payment shall be the address of the issuer;

- Where the place of signing and issue is not recorded on the promissory note, the place of signing and issuance shall be the address of the issuer.

When the amount of money written in figures on a promissory note is different from the amount of money written in words, the amount of money written in words shall be valid for payment. Where the amount of money in a promissory note is written twice or more in words or in figures and they are different, the smallest amount of money written in words shall be valid for payment.

Where a promissory note does not have sufficient space for writing, it may have an additional sheet attached. The sheet shall be used for recording details of a guarantee, endorsement, pledge or collection. The person who is the first to prepare an additional sheet must attach it to the promissory note and sign across the edges of the additional sheet and the promissory note.

View more at: The Law on negotiable instruments 2005 of Vietnam was promulgated on November 29, 2005 and effective from July 01, 2006.

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