Things To Keep In Mind About Civil Contract

Civil contracts

Civil contracts are a form of civil transaction and the following which have some things to keep in mind about civil contracts that should be consulted. According to Article 385 of the Civil Code 2015: ” Civil contract means an agreement between parties in relation to the establishment, modification or termination of civil rights and obligations”.

Things to keep in mind about civil contract

The term civil contract is also understood as a civil relationship arising from a civil contract or a document which contains the elements and terms of a civil contract. A civil contract is one of the legal, popular, and popular bases, giving rise to legal consequences with the characteristics of civil legal relations. However, when drafting and signing a civil contract, it is necessary to pay attention to the following issues:

• Regarding the subjects participating in the conclusion of a civil contract: The subject being a juridical person must have full juridical status, be entitled to participate in the conclusion of civil transactions. The subject being a natural person must have full civil act capacity and the parties must voluntarily participate in such civil transactions

• Regarding the form of civil contract: Depending on each specific contract, the law provides mandatory conditions in the form of the contract. For legal contracts stipulated to be made document which must comply strictly. In case there is a regulation on registration or notarization, authentication that compulsory to perform this regulation. Therefore, the subject should be aware of regulations of law to comply properly with the form, avoiding the contract is invalid because of non-compliance with the regulations on the form

• Regarding the conditions of validity of a civil contract: In addition to the fact that the parties have to voluntarily and equally participate in civil transactions as mentioned above, the agreements in civil contracts must not violate the prohibition by law, not contrary to social morality; the goods in the transaction must not fall into the prohibited cases.

• Regarding the rights and obligations of the parties: This is an important agreement that the parties need to elaborate in the civil contracts. Accordingly, after contracting conclusion, the parties pursuant to this agreement to perform their rights and obligations. The law stipulates the basic rights and basic obligations in a civil transaction. However, the parties can also make further agreements to suit the reality with the needs of the parties but must comply with the provisions of the law.

• Payment methods and prices must also be specified. Because this is a frequent case of disputes.

• About contractual explanation: For some special types of civil contracts, there will be specialized or confusing terms. Therefore, the parties participate in the transaction need to explain clearly. This explanation should be made in writing to pursuant tounder settlement when a dispute occurs.

• On the “Penalties for violations of contract” clause: This is an important clause to bind the parties to comply with the agreement. In case one party violates, it is required to strictly comply with the violation penalty agreement to protect the other party. Therefore, this clause should be elaborated in detail and closely. Note, the penalty must be within the limits prescribed by law for each specific transaction.

• Regarding dispute settlement terms: When entering into a contract, the subjects often do not pay attention to this issue. However, there are many options for resolving disputes such as negotiation, mediation, lawsuit … The parties need to clearly define the necessary conditions for the dispute to be resolved quickly and effectively. In case, the parties choose the law and the competent dispute settlement agency, when a dispute occurs, this agreement will be given priority.

• In addition, legal documents stipulating contracts are very important factors when signing contracts, the signing of contracts must be based on one or more legal documents so that when a dispute arises, legal documents are the legal basis for the application and resolution of disputes.

Lac Duy & Associates has many years of experience in drafting consulting, consulting on civil contracting issues, and civil contract dispute resolution. If you have any questions that need advice or support, you can immediately contact Lac Duy & Associates for immediate answers and support.

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