Chapter 4 – Questions

under-capitalized: thiếu vốn

registerd mail: thư có đảm bảo
1. What are the six steps in negotiating the legal framework of the Contract?
- Step 1: Applicable Law – Choice of Law
- Step 2: Contract or No Contract? – meeting of minds, capacity,legality, consideration.
- Step 3: Entire Agreement (thoả thuận toàn bộ/ tổng thể) : whereas-recital (lời mở đầu hđ),
contract documents (văn bản hđ), definitions
- Step 4: The parties: identiy, naming, notices, assignment (giao quyen, nghia vu)
- Step 5: State of the contract: termination, cancellation, rescission, language.
- Step 6: Settlement of disputes: amicable settelment, arbitration, litigation)

2. Compare between Anglo-American Law & Continental Law.

cases & precedents: vụ việc tiền lệ, án lệ

common law: thông luật
case law: luật án lệ
civil law: dân luật
 Continental Anglo-American
Goal Consistent and Uniform Enforcement Justice in individual cases.
Court Decisions in most cases are predictable. Judge’s decision is not fully predictable
decision Decisions
Length of Law regulates most problems  Short, Long and detailed  to be clear and
contract lacking in details. regulate many issues
Acceptance Not internationally accepted, focus on Widely understood and respected.
national issues

3. What does the applicable law govern?

Luật áp dụng đc quy định trong hđ
governed: duoc dieu chinh
Every contract is governed by an applicable law. The applicable law also governs questions
concerning the validity, interpretation and validity, performance of the contract.

=> The contract clause that specifies the applicable law should be carefully worded:

Example: This Contract, and all questions relating to its validity, interpretation or performance shall
be governed by the law of the Socialist Republic of Vietnam.

Vienna Sales Convention: Cong uoc vien: The UN convention on Contracts for the International sale
of Goods. In countries thjat have adopted it, the Vienna Sales con. overrides (dc uu tien) over
national laws in the event of a conflict. The parties to the Contract may exclude the application of the
Convention in whole or in part.

4. What are the principles of an enforceable contract?

Enforceability of a Contract
- Meeting of minds: the parties achieve a meeting of minds through a process of offer and
acceptance
- The Powere to make a contract: the parties are capable of entering a contract. (contractual
capacity)
- Legal Purposes: the purpose of a contract is legal.
If purpose illegal -> contract unenforceable.
5. Who are unable to sign contracts?
People of non-contractual capacity
- Children
- Feeble-minded (thieu nang)
- Drunks
6. What does “ultra vires” mean?
 Beyond its powers
Under the public law (company law) of many countries, a company only sign a contract that is
within its power.
A contract that is ultra vires is unenforceable, as the contract is signed beyond its power.
*What does partial invalidity mean? (điều khoản vô hiệu từng phần)
the invalidity of one part of the contract does not invalidate the rest. (if one part of the contract is
invalid, this will not affect the remaining parts).
If any provision or provisions of this contract are invalid, this will have no effect on the
remaining parts.
7. What is the Entire Agreement? (thoả thuận toàn bộ)

The final written version of the contract replacing all previous agreements between the parties.

 Anglo-American Law: signing a contract amounts to saying: everything we discussed so far is

now dead, the contract is the final form of the Parties' agreement.
 Continental Law: a letter that predates the contract, a memorandum, the minutes of the
meeting might have some bearing on the contract.

This contract constitutes the entire agreement and understanding between the parties. (H Đ
này là thoả thuận toàn bộ giữa 2 bên) There are no agreements, understandings, conditions,
reservations or representations, oral or written, that are not embodied in this contract or that
have not been superseded by this contract.
8. What is The Whereas Recital (lời mở đầu)? Why is it necessary?
whereas recital: xét thấy

 Should the Exporter treat the Recital as a chance to promote his skills and the excellence
of his products? Why or why not?

No, he shouldn't. The recital is not a chance for the exporter to promote his skills and the
excellence of his products because if the contract gets into trouble, the buyer will have a “big
stick” to beat the exporter: “You told me you were the best – and I acted on that belief.

9. When is a contract discharged by performance?

lifetime of the contract: thời hạn hđ
discharge by performance: thực hiện xong hđ
 When both parties perform their duties exactly according to the contract, the contractual
relationship ends – the contract is discharged – and the last duty (usualluy the exporter’s liability for
defects) is fully performed.
10. What is termination (chấm dứt)? Name the two types of termination:
Termination occurs when either Party pursuant to a power created by agreement or law ends/ drops/
puts an end to the contract otherwise than for its breach.
2 types of termination
- Termination for convenience: One party (usually the buyer) simply decides to drop the
contract . No reason is required
This termination type is common for time-frame contracts (hd nhieu nam) but unusual in
standard export contracts.
- Termination for default: The contract names certain defaults which allow one side (usually
the buyer) to terminate.
11. What is Termination for convenience?
Example clause: The delivery of Goods under this Contract may be terminated by the BUYER in accordance
with this clause in whole or in part, whenever the Buyer shall determine that such termination is in his best
interest (mang loi ich cao nhat cho ng mua). Any such termination shall be effected by delivery to the Seller of
a Notice of Termination specifying the extent to which supply of Goods under the contract is terminated and
the date upon which such termination becomes effective.
12. What is Termination for default?
The Buyer may, by written notice of default to the Seller, terminate the whole or any part of this contract in
any one of the following circumstances:
- If the Seller fails to make delivery of the Goods within the time specified herein;
- If the Seller fails to perform any of the other provisions of this contract or so fails to make progress as
to endanger performance of this contract in accordance with its terms and either of these two
circumstances does not cure such failure within a period of 10 days.\

Người mua, bằng cách gửi thông báo bằng văn bản về lỗi cho ng bán, có thể chấm dứt toàn bộ hoặc từng phần
của hđ này trong một trong những trường hợp sau:
- Nếu người bán không giao hàng trong thời hạn đã được quy định trong hđ
- Nếu ngườ bán không thực hiện bất cứ điều khoản của hđ hoặc không triển khai và làm ảnh hưởng việc
thực hiện hđ này theo đúng quy định của hđ này và một trong 2 TH trên không khắc phục những lỗi
này trong vòng 10 ngày.
13. What is Cancellation?
When one party breaches a contract, the other has the right to demand cancellation of the contract.
Only fundamental breach leads to the cancellation of the contract.
* Termination vs Cancellation:
 - The contract is terminated under a provision of the contract.
- The contract is cancelled when one side has breached and the other simply refuses to proceed.
14. What is Rescission (từ bỏ hđ)?
- The parties may simply agree to end their contractual relationship.
- It is a kind of two-sided termination. Both Parties see the cintinuing of the contract is useless
for them.
Termination Cancellation Rescission
The contract allows one side to One side breaches the contract Both parties agree to end the
end the contract (under contract
provisions thereof)
One-sided procedure One-sided procedure Two-sided procedure

15. What is Impossibility and Frustration?

Impossibility and Frustration occur when a contract is discharged because it is impossible or totally
pointless to continue with it.
Impossibility: Performance of the Contract is impossible for the exporter
Frustration: Performance of the Contract is impossible for the importer.
* Define four cases when a contract can be discharged?
Chọn 4 cái trên (discharge by performance, termination (2 loại), cancellation, recission, impossibility,
frustration) kèm diễn giải
16. What are the ways to solve disputes?
Settlement of disputes:
- Conciliation/mediation: an amicable settlement (hữu hảo, hoà hảo, thiện chí)
calls for friendly settlement of disagreemnets before they turn into disputes
Hai bên sẽ phải nỗ lực hết sức (try in good faith/ make every effort) giải quyết và có thiện chí
cách thương lượng trực tiếp, thân mật bất cứ tranh chấp, bất đồng phát sinh giữa 2 bên liên
quan tới hợp đồng.
- Arbitration (trọng tài): a panel of arbitrators settle the disputes
finally settled: giải quyết chung thẩm
A well-drafted abritration clause commits both parties to acceptitng the arbitral decision.
- Litigation: settlement by the court (kiện tụng)
17. What are characteristics of litigation?/ Why is litigation the least attractive method?
Litigation before the courts is internationally the least attractive
- It is public
- Expensive
- time-consuming
 - The results are often legalistic rather than business-like.
18. What are the advantages of using a panel of arbitrators?
Most companies prefer Abritration because it is
- private,
- quicker,
- costs are predictable,
- decision is business-oriented rather than law-oriented.

19. What does the arbitration clause specify?

What does the arbitration clause specify?

 How many arbitrators sit in the court?

 Where does the court sit?

 What is the language of the court?

 Who pays court costs? Example: (The arbitration fee/costs/charges shall be borne by
the losing Party.)

* Compare between Arbitration and Litigation

Litigation Arbitration
Privacy Public Private
Cost Expensive Predictable costs
Time Time-consuming Quicker
Type of result Legalistic Business-oriented

Các điểu khoản phải được đọc để nhất quán với nhau. Trong trường hượng có tranh chấp, thứ tự ưu
tiên cho các điều khoản và tài liệu của hđ này như sau:
- Bất cứ thay đổi nào trên hợp đồng mua hàng bản chính
- Hợp đồng mua hàng bản chính
- Bản quy cách phẩm chất
- Bản kê công việc
- Bản vẽ kỹ thuật
- Điều khoản mua hàng đặc biệt của ng mua
- Điều khoản mua hàng chung của ng mua

Trong hđ này, các từ dưới đây có nghĩa gán với chúng trừ khi ngữ cảnh đưa ra 1 nghĩa rõ ràng khác.
 - Trừ khi có sự điều chỉnh rõ ràng của 2 bên, FOB, CIF và các điều khoản khác có nghĩa và
nghĩa vụ gắn với chúng trong Incoterm 2020, ấn bản 460 của ICC
- Hợp đồng nghĩa là hợp đồng, mở đầu, phụ lục cũng như các văn bản được đề cập rõ ràng là
văn bản của hợp đồng…
Notices:
Thông báo của 1 bên gửi cho bên còn lại theo hđ này chỉ có gtri nếu được gửi bằng thư có đảm bảo &
có chữ ký xác nhận.
Assignment of rights and delegation of duties: chuyển quyền và giao nghĩa vụ
Quyền theo hđ này không thể được chuyển và nghĩa vụ không được giao bởi một trong 2 bên mà ko
có sự chấp thuận trước bằng văn bản của bên còn lại.

Step 5: Provisions concerning the status of contract

Language of the contract
For the sake of clarity when a contract is translated, the parties shall agree on a definite contract
language.
This agreement is written in English and Vnese. In the event of a discrepancy, the English-language
version shall prevail
Or: The parties make two versions equally authoritative
This agreement is made in … of legal force (giá trị pháp lý ngang nhau
of no legal status: ko có gtri pháp lý
Correspondence (Giao dịch) between the parties shall be exclusively in English