The Civil Code (BLDS) is a very important law for each country, having an impact on the regulation of basic relationships within society, every citizen, families, agencies, and organizations. From January 1, 2017, the 2015 Civil Code (BLDS 2015) officially came into effect. Thu Ky Luat would like to introduce the prominent new points stipulated in the BLDS 2015.
Article table of contents
Permission to Change Gender
This is a notable new point in the Civil Code 2015 that has garnered much attention from the public.
The Civil Code 2015 allows for gender change for individuals who have established and completed their gender identity. Gender reassignment is carried out according to the provisions of the law. Individuals who have changed their gender have the right and obligation to register their civil status change following the provisions of civil status laws; have personal rights consistent with their gender according to the provisions of this Code and other relevant laws.
The Civil Code stipulates that gender reassignment is to be conducted under the provisions of the law, meaning individuals will only be able to exercise this right once there is a law on gender reassignment.
Additionally, as of January 1, 2017, if the National Assembly has not yet promulgated a law on gender reassignment, the right to gender reassignment for many individuals will still be "on hold".
Separate Section for the Usufruct Right
According to the Civil Code 2015, the usufruct right is the right of an entity to exploit and enjoy the benefits of an asset owned by another entity for a certain period. This right is established according to the provisions of the law, by agreement, or by will. The usufruct right is established from the moment the asset transfer is received, unless otherwise agreed or stipulated by related laws. The established usufruct right is effective for all individuals and legal entities, unless otherwise stipulated by related laws.
The duration of the usufruct right is as agreed upon by the parties or as stipulated by law but is limited to the lifetime of the first usufructuary if the usufructuary is an individual and until the legal entity ceases to exist but not exceeding 30 years if the first usufructuary is a legal entity. A usufructuary may themselves or permit others to exploit, use, and reap the benefits from the subject of the usufruct right.
Legal Entities can be Guardians
Previously, Civil Code 2005 stipulated that only individuals could be guardians. However, Civil Code 2015 expands the guardianship to not only individuals but also to legal entities.
A legal entity that meets the following conditions can be a guardian:
- Has civil legal capacity appropriate for guardianship.- Has the necessary conditions to perform the rights and obligations of a guardian.
Clear Regulations on Agreed Interest Rates
Civil Code 2015 stipulates that loan interest rates are agreed upon by the parties. If the parties agree on an interest rate, the agreed interest rate must not exceed 20% per annum of the loan amount, unless otherwise stipulated by related laws. Based on the actual situation and the proposal of the Government of Vietnam, the Standing Committee of the National Assembly shall decide on adjusting the above interest rate and report to the National Assembly at the nearest session.
If the agreed interest rate exceeds the specified limit, the excess rate will not be effective.
If the parties agree on interest payments but do not specify the interest rate and there is a dispute over the interest rate, the interest rate will be determined at 50% of the specified limit at the time of payment.
Contract Performance under Substantial Change of Circumstances
In the event of a substantial change of circumstances, the party whose interests are affected has the right to request the other party to renegotiate the contract within a reasonable period. A substantial change of circumstances occurs under the following conditions:
- The change of circumstances is due to an objective cause occurring after the contract was concluded.- At the time of conclusion, the parties could not have foreseen the change.- The change in circumstances is so large that if the parties had known in advance, the contract would not have been concluded or would have been concluded with entirely different contents.- Continuing the contract without changing its terms would cause serious harm to one party.- The affected party has taken all necessary measures within their capability to prevent or reduce the impact on their interests.
If an agreement on contract revision is not reached within a reasonable period, one of the parties may request the court to:
- Terminate the contract at a specific point in time.- Modify the contract to balance the lawful rights and interests of the parties due to the substantial change of circumstances.
The court can only decide to modify the contract if terminating the contract would cause greater damage compared to the costs of executing the modified contract.
Priority Order for Debt Payment in Inheritance
The new Civil Code supplements new points regarding property obligations and related expenses in inheritance that are paid in the following order of priority: Reasonable customary funeral expenses; Maintenance money overdue; Preservation costs of the inheritance; Support money for dependents; Labor costs; Damage compensation; Taxes and other amounts payable to the state budget; Other debt obligations to individuals and legal entities; Fines and other costs.
