What Is A Civil Contract? And What Types Of Civil Contracts Included?

A civil contract is one of the legal, popular bases, giving rise to legal consequences with the characteristics of civil legal relations. To help readers understand civil contract issues, Lac Duy & Associates provide an analysis of civil contracts and principal types of civil contracts.

Civil contract

Civil contract means an agreement between parties to the establishment, modification,or termination of civil rights and obligations.

Principal types of civil contracts

Under the provisions of Article 402 of Civil Code 2015, a civil contract includes the following main types of contracts:

• A bilateral contract is a contract whereby each party has an obligation to the other;

• A unilateral contract is a contract whereby only one party has an obligation;

• A principal contract is a contract the effectiveness of which does not depend on another contract;

• An ancillary contract is a contract the effectiveness of which depends on a principal contract;

• A contract for the benefit of a third person is a contract whereby contracting parties must perform obligations for the benefit of a third person and the third person enjoys benefits from such performance;

• A conditional contract is a contract the performance of which depends on the occurrence, modification, or termination of a specified event.

In fact, there are many different types of contracts and can be based on different bases to distinguish different types of contracts, specifically:

• Based on the form of a contract, civil contracts are classified into verbal contracts, written contracts, notarized contracts, authenticated contracts, and model contracts.

• Based on the relationship of civil rights and obligations between the parties, a civil contract is classified into a duplex contract and a single-case contract.

• Based on the interdependence of the validity between contracts, civil contracts are classified into main and sub-contracts:

+ A main contract is a contract whose validity does not depend on a subcontract. Thus, when the main contracts have fully complied with the prescribed law conditions, it naturally arises into force and becomes mandatory for the parties from the time of signing.

+ Sub-contract is a contract whose validity depends on the main contract. The sub-contracts that want to take effect must fully comply with the statutory conditions on the subject, content, form,…However, if the above conditions have been complied with, the contract may still be invalid if the main contract (the contract to which it depends) is deemed invalid. For example, the mortgage contract does not go into effect when the loan agreement is ineffective.

• Based on the reciprocity of the interests of the subjects, civil contracts are classified into compensated contract (contracts with compensation) and uncompensated contract (contracts without compensation):

+ Compensated contract is a contract in which each party, after performing for the other party a benefit, will receive from the other a corresponding benefit. Most civil contracts are compensated for contracts. Compensation in a contract is applied by the parties to exchange material benefits. Compensated contracts are mostly bilateral contracts and vice versa. In practice, there are still cases where the compensation contract is an unilateral contract (such as an interesting loan contract whose effect is determined at the time the borrower has received the money) and the bilateral contracts without compensation such as contract of the deposit without remuneration.

+ An uncompensated contract is a contract in which one party receives from the other a benefit but does not have to assign any benefits. Contracts without compensation are often concluded based on affection and mutuality between the subjects. In the process of entering into this contract, although promising and unanimous, the acceptance of the proposal is not binding on the proposed party. Therefore, for property donation contracts, the law provisions come into effect when the parties have given each other the object of donation or have completed the transfer of ownership procedures.

• Based on the date of entry into force, a civil contract is classified into a consent contract and an actual contract:

+ Consent contracts are contracts where the rights and obligations of the parties arise right after the parties have reached an agreement with each other on the main content of the contract. It can be understood that the effective time of a consent contract is the time of signing.

+ Actual contracts are contracts that, after being agreed, their validity arose only at the time when the parties have transferred to each other the object of the contract.

• A conditional contract is a contract whose performance depends on rising, changing, or terminating a certain event. However, an event that the parties agree to be only considered a condition for the contract to be performed or to be terminated when the event meets the following requirements:

+ Objective events: events occurring or not, out of the will of the subjects and are future circumstances (appearing after the contract has been entered into);

+ If the condition is a must-do job, it must be possible work;

+ The event agreed upon by the parties must be in accordance with the law and not contrary to social ethics.

• A contract for the benefit of a third person is a contract in which the contracting parties must perform their obligations and the third person benefits from the performance of that obligation. In practice, there are cases where a third party does not directly participate in the contract as an entity, but they have rights over the obligor because the parties to the agreement have the obligor perform the obligations of a third person. This agreement can be direct or implied, due to the nature of the contract. For example: contract of postal delivery, money transfer by post…

• A mixed contract is a contract that, when signed, gives rise to civil rights and obligations which are the content of two or more ordinary contracts at the same time.

Above is the opinion of Lac Duy & Associates on civil contracts. This is also a reference source for readers to resolve this dispute. In addition, readers can contact Lac Duy & Associates to receive timely advice and support on other issues such as: property loan contract disputes, goods sale, and purchase contract disputes, contracts transfer of land use rights, house purchase and sale contract, contract of the promise to purchase promised sale, contract of deposit …

More: Things To Keep In Mind About Civil Contract

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