Regulations on purchase and sale of goods by mandated dealers in Vietnam

Regulations on purchase and sale of goods by mandated dealers in Vietnam (Internet image) 

1. What is purchase and sale of goods by mandated dealers?

According to Article 155 of the Commercial Law 2015, purchase and sale of goods by mandated dealers mean commercial activities whereby the mandatory conducts the purchase and sale of goods in his/her/its own name under terms agreed upon with the mandator and is entitled to receive mandate commission.

Inside:

- A mandatory for purchase and sale of goods is a trader dealing in goods which are consistent with the mandated goods and conducting the purchase and sale of goods under terms agreed upon with the mandator.

- A mandator of purchase and sale of goods may, or may not, be a trader that authorizes a mandatory to conduct the purchase and sale of goods at his/her/its request and pays a commission.

- All goods which are lawfully circulated may become the subject matter of a mandated sale and purchase.

(Article 156, 157, 158 of the Commercial Law 2015)

2. Rights and obligations of the mandators in Vietnam

According to Article 162 and 163 of the Commercial Law 2015, the mandators have the following rights and obligations:

2.1 Rights of the mandators in Vietnam

Unless otherwise agreed, mandators shall have the following rights:

- To request mandatories to supply adequate information on the performance of mandate contracts;

- Not to bear responsibility in cases where mandatories commit law violations, except for cases where mandatories commit law violations which are attributable to acts of mandators or intentional law-breaking acts of the parties.

2.2 Obligations of the mandators in Vietnam

Unless otherwise agreed, mandators shall have the following obligations:

- To provide information, documents and means necessary for the performance of mandate contracts;

- To pay mandate commissions and other reasonable expenses to mandatories;

- To hand over money and goods as agreed upon;

- To bear joint responsibility in cases where mandatories commit law violations which are attributable to acts of mandators or intentional law-breaking acts of the parties.

3. Rights and obligations of the mandatories in Vietnam

3.1 The right of the mandatories in Vietnam

Unless otherwise agreed, mandatories shall have the following rights:

- To request mandators to provide information and documents necessary for the performance of mandate contracts;

- To receive mandate commissions;

- Not to bear responsibility for goods handed over to mandators strictly under agreement.

3.2 Obligations of mandatories in Vietnam

Unless otherwise agreed, mandatories shall have the following obligations:

- To conduct the purchase and sale of goods as agreed upon;

- To notify mandators of matters related to the performance of mandate contracts;

- To follow instructions of mandators as agreed upon;

- To preserve assets and documents assigned to them for the performance of mandate contracts;

- To keep secret information related to the performance of mandate contracts;

- To hand over money and goods as agreed upon;

- To bear joint responsibility for law violation acts of mandators, in cases where such law violation acts are partially attributable to their own faults

(Article 164, 165 of the Commercial Law 2015)

4. Sub-mandate to a third party in Vietnam

According to Article 160 of the Commercial Law 2015, a mandatory shall not be allowed to sub-mandate a third party to perform the signed mandate contract for purchase and sale of goods, except where it is so approved in writing by the mandator.

A mandatory may accept the mandate for purchase and sale of goods from different mandators as prescribed in Article 161 of the Commercial Law 2015.

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