Vietnam’s Decree 158: Mode of performance of term-contract and option-contract

According to Article 41 of Decree No. 158/2006/NĐ-CP of Vietnam’s Government, mode of performance of term-contract and option-contract is prescribed as follows:

1. Term-contract trading parties may choose to perform their contract by either of two following modes:

- Clearing payment through the Payment Center at the last session of the last day of contractual trading;

- Delivery and receipt of goods through the Goods Forwarding Center.

2. Contractual trading parties may choose to perform their contract by either of two following modes:

- Exercise of the right to option by clearing payment through the Payment Center at the last session of the last day of contractual trading or delivery and receipt of goods through the Goods Forwarding Center;

- Non-exercise of the right to option.

Before the last day of contractual trading, the Goods Exchange shall, as required by its operation charter, request trading members to choose to perform contracts by the modes specified above. Concurrently, trading members shall, as required by the operation charters of the Goods Exchange, notify in writing the Goods Exchange of their option to perform contracts by mode of goods forwarding.

If choosing to perform a contract by mode of goods forwarding, within a time limit specified by the Goods Exchange, a trading member is obliged:

- To remit money into its account if it is the purchaser;

- To deliver goods to the Goods Forwarding Center if it is the seller.

View more details at Decree No. 158/2006/NĐ-CP of Vietnam’s Government, effective from January 22, 2007.

Ty Na

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