The dispute settlement of the international contract for the sale of goods in Vietnam

There are two issues when determining an international contract for the sale of goods:

First, the contract for the sale of goods. In the light of the CISG 1980, the contract for the sale of goods is a contract pursuant to which the seller is bound to deliver goods, transfer the property in the goods, and, if applicable, hand over any documents relating to the goods, while the buyer is obliged to pay for the goods.

Second, the international character of the contract for the sale of goods. A contract for the sale of goods is international when, at the time the contract was entered into, the parties have their relevant places of business or the places from which the business of each party is carried out in different States.

Therefore, a contract for the international sale of goods is a contract was signed by the parties whose businesses carried out in different States. Dispute of the international contract for the sale of goods is the dispute arising between buyers and sellers about the international contract for the sale of goods.

Dispute of the international contract for the sale of goods arises when one of the parties of the contract fails to perform or improper performance of its committed obligations under the international contract for the sale of goods, or other words, dispute arising from a breach of the international contract for the sale of goods.

Dispute of the international contract for the sale of goods in Vietnam originates from many causes. There are some popularity disputes of the international contract for the sale of goods including subjective and objective causes, such as:

• The dispute arises from the differences between the National Laws of each party;
• The dispute arises from the location and the signing date of the contract to determine the law governing the contract, the terms, and the form of the contract;
• The dispute arises from the event of force majeure listed or unlisted in the contract;
• The dispute arises from the conditions for contract performance;
• Especially, the dispute arises from the violation of one of the parties of the obligation in the international contract for the sale of goods.

According to article 317 Commercial Law 2005, there are four forms of resolution of disputes, including Negotiations, Conciliation, Resolution by Arbitration, or the Court.

In the practice of signing the international contract for the sale of goods, when a dispute arises, instead of bringing the dispute to the arbitration body or court for immediate settlement, the parties are usually encouraged to resolve it by self–negotiation. In that case, the party with an interest in violation complains to the infringing party for the purpose of requiring the infringing party to perform its obligations under the provisions of the contract or to take responsibility in the form of compensation for damage.

Conciliation is a process in which the parties of a contract jointly bring a dispute to a third party chosen by the parties to resolve it with the aim of reaching an agreement to satisfy the interests of both parties. However, the agreement reached is not legally binding on the parties.

According to clause 4, article 317 the Commercial Law 2005, Procedures for resolution of commercial disputes by arbitration or a court shall comply with procedures applicable to arbitrations or courts provided for by law.

Nowadays, arbitration is often used to resolve disputes arising from the international contract for the sale of goods. Because compared to courts, resolving disputes by arbitration has more advantages.

>> Read more: The dispute settlement of commercial contract by court

>> Read more: The dispute settlement of commercial contract by arbitration

There is the overview information of the dispute settlement of the international contract for the sale of goods. In case clients get in trouble with the dispute settlement of the international contract for the sale of goods in Vietnam, feel free to contact us. Apolo Lawyers with a high-quality and professional solicitors and litigators team will give you a full stack of legal services about the dispute settlement of the international contract for the sale of goods fastly and effectively. We are confident in providing Clients with optimal and effective legal service. Using our service, Apolo Lawyers will help you no limited but include the following:

• Consulting on the right and obligation of the parties in the contract sale of goods;
• Consulting to determine the basis for dispute settlement and legal basis for dispute settlement;
• Consulting, and preparing to contact and negotiate with related parties in the settlement of international contract sale of goods disputes;
• Guide customers to collect documents and evidence, provide information;
• Authorized representative lawyers meet and discuss with Arbitration, Courts, and judgment enforcement agencies to protect the legitimate rights and obligations of clients.

For further information, please contact us: Apolo Lawyers - Solicitors & Litigators