NGUYEN TRONG DAN 11(11 3 HONG TIMIN

NGUYEN TRONG DAN
11(11 3 HONG TIMING MAI
QUtit TE
Xueit bcin lein this 6
International
Trade Contracts
6t h Edition
NHA XUAT BAN LAO DONG
HA NOL 2007
Thu' tit g6p y xin
GS.TS. Nguygn Trong Dan
DTDD: 0904 055 077
Email: dhannte,fpt.vn
Tac gi6 gilt bgn quye'n
© Copyright by the author
2
Preface
This book is intended to provide commerce students of international
trade and other readers with guidelines to the language of international
trade contracts as the name of the book suggests.
Despite the difficulty and complexity of the subject matter, the language
used in the book is straightforward and readily understood.
The book contains 11 parts. The first eights parts deal with legal aspects
and give examples of authentic language used to illustrate them. At the
end of each part, there are comprehension questions so that the students
can check their understanding. In the footnote from Part 1 to Part 8, four
or five words and/or expressions are listed with their context meanings
in Vietnamese.
Part 10 gives examples of authentic contracts from various Vietnamese
and foreign trading corporations. All of these contracts are bilingual:
English and Vietnamese. Part 11 includes the ICC Model Sale contract
and the remarks made on each individual provision in the light of the
civil code of the SRVN regarding civil contracts.
Although every effort has been made to ensure the reliability of the
information in the book, for readers of the book, the author is not
responsible for any losses resulting from using this book or specimen
contract clauses taken from therein. Before signing a contract, business
persons should take appropriate legal advice.
As mentioned the subject matter is very difficult and complicated, errors
and mistakes might have been made here and there in the book.
Constructive suggestions and corrections are, therefore, highly
appreciated.
Prof. Dr. Nguyin Trong Dan
Hanoi, 2007
3
Acknowledgements
I would like to express my many thanks for Directing Board of the
Foreign Trade University for their help and assistance during the
preparation and production of this book.
I also would like to express my sincere thanks for my colleagues at the
English Department of the Foreign Trade University for their long and
kind co-operation in the making of this book.
I am deeply indebted to my Australian Collegue, Mr. Timothy Maxwell
Clemons for his valuable suggestions, comments, criticism and
correction during the development of this book.
I am also deeply indebted to all Vietnamese and foreign import and
export organizations and commercial services to their assistance and
permission for reproduction of their contracts and documents.
As always I wish to express my special thanks to my wife and my
children for their understanding and encouragement throughout the
preparation of this book.
I would like to thank Mr. Nguyen Van Chau, BMA, Researcher, at the
Foreign Trade University for his deligence shown in proofreading of the
book and for all other things that he has done on my behalf so that the
book would have been made possible for the first edition.
Finally, I also would like to thank all of my friends and former students
for their assistance in providing the contracts and their translation.
Prof. Dr. Nguyin Trong Dan
4
Contents
Page
PREFACE
3
ACKNOWLEDGEMENTS
4
CONTENTS
5
BIBLIOGRAPHY
7
HOW TO WORK WITH THE BOOK
9
THE RELATIONSHIP BETWEEN THE LAW AND THE CONTRACT
11
1.
BRIEF INTRODUCTION TO THE LAW AND THE CONTRACT
11
2.
THE RELATIONSHIP BETWEEN THE LAW AND THE CONTRACT
11
3.
EUROPEAN (CONTINENTAL) LAW AND ANGLO - AMERICAN
LAW
13
4. THE APPLICABLE LAW
17
5. SOME SPECIMEN CLAUSES
21
6. COMPREHENSION QUESTION
22
THE LANGUAGE OF CONTRACT IN ENGLISH
25
1. THE CONTRACT SENTENCE
25
2.
THE LANGUAGE OF ANGLO-AMERICAN CONTRACTS
31
3.
THE CLAUSES PATTERN IN CONTRACT ENGLISH
33
4. THE PASSIVE FORM
37
5. COMPREHENSION QUESTIONS
38
INTERPRETATION OF THE CONTRACT
43
1.
THE ENTIRE AGREEMENT AND THE CONTRACT DOCUMENTS
43
2. THE WHEREAS - RECITAL
45
3. DEFINITIONS
47
4. SOME SPECIMEN DEFINITIONS
49
5. COMPREHENSION QUESTIONS
50
Part 4 THE PARTIES TO A CONTRACT
54
I.
THE NAMES OF THE PARTIES TO A CONTRACT
54
2. THE SIGNATURE
55
3.
THE ASSIGNMENT OF RIGHTS AND DUTIES
57
4. COMPREHENSION QUESTIONS
58
Part 5 GOODS AND DELIVERY, PRICE AND PAYMENT
61
I. SCOPE AND DELIVERY
61
2. PRICE AND PAYMENT
69
3. COMPREHENSION QUESTIONS
72
Part 6 THE DEFECT AND THE LIABILITY
75
I. WARRANTY AND GUARANTEE
75
2. THE DEFECTS LIABILITY PERIOD
76
3. REMEDY
77
4.
THE TIMING OF THE DEFECTS LIABILITY PERIOD
79
5.
WHO PAYS FOR CLAIMS UNDER WARRANTY?
80
6.
DEFECTS LIABILITY AND MAINTENANCE
81
Part 1
Part 2
Part 3
5
7 - COMPREHENSION QUESTIONS 82
Part 7 BREACH OF CONTRACT 87
I. LIQUIDATED DAMAGES AND PENALTIES 87
2. LIQUIDATED DAMAGE: PROBLEMS 88
3. TERMINATION 91
4. THE LIMITATION OF LIABILITY 93
5. COMPREHENSION QUESTIONS 99
Part 8 FORMATION OF CONTRACTS 104
I. SOME LEGAL ASPECTS 104
2. THE OFFER 108
3. THE PURCHASE ORDER 109
4. ACCEPTANCE OF ORDERS 109
5. GENERAL CONDITIONS 109
6. ECE GENERAL CONDITIONS 110
7. APPLICABILITY 110
8. GENERAL NOTE ON NEGOTIATION 111
9. COMPREHENSION QUESTIONS 111
Part 9 THE INDUSTRIAL PLANT CONSTRUCTION CONTRACT 114
1. UNPACKAGING, TENDERING AND NEGOTIATION 114
2. THE PARTIES 117
4. THE EMPLOYER'S DUTIES: PRICE AND PAYMENT 122
5. VARIATION 123
6. TEST AND INSPECTIONS 126
7. AN EXAMPLE OF A SUPPLY CONTRACT TO DELIVER AND
INSTALL MACHINERY (BILINGUAL) 129
Part 10 EXAMPLES OF CONTRACT 231
I. CONTRACT FOR RICE
231
2. CONTRACT FOR LUBRICANTS
241
3. ABC CORPORATION'S CONTRACT
249
4. CONTRACT FOR GARMENT PROCESSING
260
5. CONTRACT FOR DISTRIBUTORSHIP AGENCY
273
6. JOINT VENTURE CONTRACT 306
7. SALES AND PURCHASE CONTRACT 1 322
8. SALES AND PURCHASE CONTRACT 2 334
Part 11 ICC MODEL CONTRACT FOR THE SALE OF GOODS 340
I. THE ENGLISH VERSION OF THE CONTRACT 340
2. THE VIETNAMESE VERSION OF THE CONTRACT 354
3. MODEL CONTRACT FOR THE SALE OF GOODS AND THE CIVIL
CODE OF VIETNAM 369
APPENDIX 385
- CONG 1.fric VIEN 1980 385
2 HOP DOING MUA BAN TAI SAN THEO LUAT DAN SVCOA NUOC
CONG HOA XA HOI CHU NGHIA VIET NAM 428
6
BIBLIOGRAPHY
Anderson, Ronald A. Business Law. Cincinati: South Western 1980.
Black, H. C. Black's Law Dictionary. 5 th ed. St Pault: West. 1979.
Dy, Nguyen Duc, et al. Tt? di en ngoai Throng Dai hoc Ngoui
thtrong, Ha NOi. 1985.
Dy, Nguyen Dile. Tit dien gidi nghia kinh to kinh doanh, NXB Khoa
hoc va Ky thuat. 1996.
Dam, Nguyen H6ng. Van tdi ngoai thumg. Throng Dai hoc Ngoul
thtrang. 1987.
Dan, Nguyen Trong. Ngorr ngi? hop dong thu'ung mai Anh My. Sinh
hoat khoa hoc trubng Dal. hoc Ngoai thtrong. 1993.
Dan, Nguyen Trong. Cau, menh de va ngi? trong hop eking thuzing
mai quae re'. Ky
y6u HOi nghi Khoa hoc 1c'T ni4rn 30 nam Vien ngOn ngir
hoc V* Nam. 1993.
Dan, Nguyen Trong.
The language of business correspondence in
English. NXB Gido duc. Ha NO. 1992.
Groner, Sammel B. Modern Business Law. Reston. 1983
Mc (Draw Hill - 1992. Gifis, Steven H. Law Dictionary, Third Ed.
New York, 1992.
Nguyen Th6 et al. Ter dien Phap luat Anh Viet. NXB KHXH.
1992.
Federation Internationale des Ingenieurs (FIDIC):
Conditions of
Contract - 1987
International Chamber of Commerce:
+ Force Majeure and Hardship. Paris. ICC. 1984.
7
+
Guide to Penalty and Liquidated Damages Clauses.
Paris
ICC. 1990.
+ Incoterms -
Paris ICC. 2000.
+
Model forms for Issuing Contract guarantees Paris. ICC - 1992.
+ Rules of Concilliation and Arbitration.
Paris. ICC. 1988.
Ma, Nguyen Thi va Thiet, Hoang Van. Phap ly dai cumig. TriOng
Dai hoc Ngoai thuong. NOi. 1991
Ma, Nguyen Thi va Hoang Van: Nhil'ng van de phap li trong
ngoai thumg.
TrtOng Dai hoc Ngoai diming. 1996.
Pinnels, James.
International Procurement Contracts.
Prodec.
Helsinki. 1991.
Sanderson, Steve. Ed.
Standard Legal Forms and Agreements for
Canadian business. Canada 1989.
Staple, James G. et al.
"Know - how in the united States" in the know
- how contract in Germany, Japan and the United States
Ed. Herbert Stumpf Deventer: Kluwer. 1984.
Tixu, Vu Hiru. Tdchdc ky thugt Ngoai thurnig. Trtthng Dai hoc Ngoai
thuang. Ha NOi, 1991.
White, James, et al - Uniform Commercial Code. St Paul West. 1980.
Trinh, Dinh Xuan. tay thank loan Quo . c Trubng Dai hoc Ngoai
thtrong Ha NO. 1991
Bo lugt Dan su' dia nu& Cong hoa xar 110i chi nghig Viet Nam.
Vietnam Law & Legal Forum. 1996.
Ludt thumig mai cua niffrc COng hoa xd hgi chi nghra Viet Nam.
1996.
Legal writings on Foreign Investment in Vietnam.
SCCI. 1992.
COng uOc Vien 1980 ye Hop (long mua ban QuCic to Paris. 1980.
8
HOW TO WORK WITH THE BOOK
This book is, as mentioned, meant to be used, firstly by commerce
students at the Hanoi Foreign Trade University and otber business
persons. The focus of the book is on both the language and other legal
aspects of contracts.
Anyone who wishes to use the book effeciently should, first of all, attain
a fairly advanced level of English and then have a good understanding of
such key subjects as:
- Laws applied to international business operations
- Foreign Trade Organizations and Techniques
- International Payment
- Shipping, Transport and Insurance.
In order to understand, at the beginning, and be able to apply the contract
terms and conditions, the students, readers and users are required to work
through the book starting from Part I.
The working phases are recommended as follows:
Phase 1:
- Understanding technical terms
- Being able to analyze clause structure
- Understanding every single grammatical unit.
Phase 2:
- Understanding legal and technical aspects as explained in each
part
- Reading sample provisions
- Reading and understanding short contracts, and then

Kết quả (Việt) 1:

NGUYỄN TRỌNG DAN 11 (11 3 HỒNG THỜI GIAN MAI. QUtit TE Xueit bcin lein này 6 Quốc tế Hợp đồng thương mại 6T h Edition NHA XUAT BAN LAO DONG HÀ NOL 2007 Thu' Periparus g6p y Xin suo DSMTS. Nguygn Trong Dan DTDD: 0904 055 077 Thư điện tử: dhannte,fpt.vn Tac gi6 gilt bgn quye'n © Bản quyền của tác giả 2 Lời nói đầu Cuốn sách này nhằm cung cấp thương mại sinh viên quốc tế thương mại và các độc giả khác với các hướng dẫn để ngôn ngữ của quốc tế thương mại hợp đồng như tên của cuốn sách. Mặc dù khó khăn và phức tạp của các vấn đề, ngôn ngữ được sử dụng trong cuốn sách này là đơn giản và dễ hiểu. Cuốn sách này chứa phần 11. 8 đầu tiên phần đối phó với các khía cạnh pháp lý và đưa ra các ví dụ của ngôn ngữ xác thực được sử dụng để minh họa cho chúng. Tại các kết thúc của mỗi phần, có hiểu câu hỏi để các sinh viên có thể kiểm tra sự hiểu biết của họ. Trong chú thích từ phần 1 để phần 8, bốn hoặc năm từ và/hoặc biểu hiện được liệt kê với ý nghĩa của ngữ cảnh ở Việt Nam. Phần 10 cho ví dụ xác thực hợp đồng từ nhiều Việt Nam và Tổng công ty thương mại nước ngoài. Tất cả các hợp đồng là song ngữ: Tiếng Anh và tiếng Việt. Phần 11 bao gồm hợp đồng ICC mô hình bán và những nhận xét được thực hiện trên mỗi điều khoản cá nhân trong light của các bộ luật dân sự của SRVN liên quan đến hợp đồng dân sự. Mặc dù mọi nỗ lực đã được thực hiện để đảm bảo độ tin cậy của các thông tin trong cuốn sách, cho độc giả của cuốn sách, tác giả là không chịu trách nhiệm về bất kỳ thiệt hại phát sinh từ việc sử dụng này cuốn sách hoặc mẫu điều khoản hợp đồng thực hiện từ trong đó. Trước khi ký kết một hợp đồng, kinh doanh những người cần tư vấn pháp lý thích hợp. Như đã đề cập vấn đề là rất khó khăn và phức tạp, lỗi và những sai lầm có thể đã được thực hiện ở đây và ở đó trong cuốn sách. Đề xuất xây dựng và sửa chữa, do đó, đánh giá cao đánh giá cao. Giáo sư tiến sĩ Nguyin Trong Dan Hà Nội, 2007 3 Lời cảm ơn Tôi muốn nhận của tôi rất cám ơn cho Ban chỉ đạo của các Đại học ngoại thương của họ giúp đỡ và hỗ trợ trong các chuẩn bị và sản xuất của cuốn sách này. Tôi cũng muốn cảm ơn chân thành của tôi cho đồng nghiệp của tôi tại các Khoa tiếng Anh của đại học ngoại thương cho lâu dài của họ và loại hợp tác trong việc làm của cuốn sách này. Tôi mang ơn sâu sắc của tôi Collegue Úc, ông Timothy Maxwell Clemons cho ông đề xuất có giá trị, ý kiến, phê bình và chỉnh sửa trong sự phát triển của cuốn sách này. Tôi cũng sâu sắc mắc nợ tất cả Việt Nam và nước ngoài nhập khẩu và xuất khẩu các tổ chức và dịch vụ thương mại để hỗ trợ của họ và cho phép cho sinh sản của hợp đồng và tài liệu của họ. Như luôn luôn tôi muốn để thể hiện đặc biệt của tôi nhờ vợ tôi và tôi trẻ em của sự hiểu biết và khuyến khích trong suốt các chuẩn bị của cuốn sách này. I would like to thank Mr. Nguyen Van Chau, BMA, Researcher, at the Foreign Trade University for his deligence shown in proofreading of the book and for all other things that he has done on my behalf so that the book would have been made possible for the first edition. Finally, I also would like to thank all of my friends and former students for their assistance in providing the contracts and their translation. Prof. Dr. Nguyin Trong Dan 4 Contents Page PREFACE 3 ACKNOWLEDGEMENTS 4 CONTENTS 5 BIBLIOGRAPHY 7 HOW TO WORK WITH THE BOOK 9 THE RELATIONSHIP BETWEEN THE LAW AND THE CONTRACT 11 1.BRIEF INTRODUCTION TO THE LAW AND THE CONTRACT 11 2.THE RELATIONSHIP BETWEEN THE LAW AND THE CONTRACT 11 3.EUROPEAN (CONTINENTAL) LAW AND ANGLO - AMERICAN LAW 13 4. THE APPLICABLE LAW 17 5. SOME SPECIMEN CLAUSES 21 6. COMPREHENSION QUESTION 22 THE LANGUAGE OF CONTRACT IN ENGLISH 25 1. THE CONTRACT SENTENCE 25 2.THE LANGUAGE OF ANGLO-AMERICAN CONTRACTS 31 3.THE CLAUSES PATTERN IN CONTRACT ENGLISH 33 4. THE PASSIVE FORM 37 5. COMPREHENSION QUESTIONS 38 INTERPRETATION OF THE CONTRACT 43 1.THE ENTIRE AGREEMENT AND THE CONTRACT DOCUMENTS 43 2. THE WHEREAS - RECITAL 45 3. DEFINITIONS 47 4. SOME SPECIMEN DEFINITIONS 49 5. COMPREHENSION QUESTIONS 50 Part 4 THE PARTIES TO A CONTRACT 54 I. THE NAMES OF THE PARTIES TO A CONTRACT 54 2. THE SIGNATURE 55 3.THE ASSIGNMENT OF RIGHTS AND DUTIES 57 4. COMPREHENSION QUESTIONS 58 Part 5 GOODS AND DELIVERY, PRICE AND PAYMENT 61 I. SCOPE AND DELIVERY 61 2. PRICE AND PAYMENT 69 3. COMPREHENSION QUESTIONS 72 Part 6 THE DEFECT AND THE LIABILITY 75 I. WARRANTY AND GUARANTEE 75 2. THE DEFECTS LIABILITY PERIOD 76 3. REMEDY 77 4.THE TIMING OF THE DEFECTS LIABILITY PERIOD 79 5.WHO PAYS FOR CLAIMS UNDER WARRANTY? 80 6.DEFECTS LIABILITY AND MAINTENANCE 81 Part 1 Part 2 Part 3 5 7 - COMPREHENSION QUESTIONS 82 Part 7 BREACH OF CONTRACT 87 I. LIQUIDATED DAMAGES AND PENALTIES 87 2. LIQUIDATED DAMAGE: PROBLEMS 88 3. TERMINATION 91 4. THE LIMITATION OF LIABILITY 93 5. COMPREHENSION QUESTIONS 99 Part 8 FORMATION OF CONTRACTS 104 I. SOME LEGAL ASPECTS 104 2. THE OFFER 108 3. THE PURCHASE ORDER 109 4. ACCEPTANCE OF ORDERS 109 5. GENERAL CONDITIONS 109 6. ECE GENERAL CONDITIONS 110 7. APPLICABILITY 110 8. GENERAL NOTE ON NEGOTIATION 111 9. COMPREHENSION QUESTIONS 111 Part 9 THE INDUSTRIAL PLANT CONSTRUCTION CONTRACT 114 1. UNPACKAGING, TENDERING AND NEGOTIATION 114 2. THE PARTIES 117 4. THE EMPLOYER'S DUTIES: PRICE AND PAYMENT 122 5. VARIATION 123 6. TEST AND INSPECTIONS 126 7. AN EXAMPLE OF A SUPPLY CONTRACT TO DELIVER AND INSTALL MACHINERY (BILINGUAL) 129 Part 10 EXAMPLES OF CONTRACT 231 I. CONTRACT FOR RICE 231 2. CONTRACT FOR LUBRICANTS 241 3. ABC CORPORATION'S CONTRACT 249 4. CONTRACT FOR GARMENT PROCESSING 260 5. CONTRACT FOR DISTRIBUTORSHIP AGENCY 273 6. JOINT VENTURE CONTRACT 306 7. SALES AND PURCHASE CONTRACT 1 322 8. SALES AND PURCHASE CONTRACT 2 334 Part 11 ICC MODEL CONTRACT FOR THE SALE OF GOODS 340 I. THE ENGLISH VERSION OF THE CONTRACT 340 2. THE VIETNAMESE VERSION OF THE CONTRACT 354 3. MODEL CONTRACT FOR THE SALE OF GOODS AND THE CIVIL CODE OF VIETNAM 369 APPENDIX 385 - CONG 1.fric VIEN 1980 385 2 HOP DOING MUA BAN TAI SAN THEO LUAT DAN SVCOA NUOC CONG HOA XA HOI CHU NGHIA VIET NAM 428 6 BIBLIOGRAPHY Anderson, Ronald A. Business Law. Cincinati: South Western 1980. Black, H. C. Black's Law Dictionary. 5 th ed. St Pault: West. 1979. Dy, Nguyen Duc, et al. Tt? di en ngoai Throng Dai hoc Ngoui thtrong, Ha NOi. 1985. Dy, Nguyen Dile. Tit dien gidi nghia kinh to kinh doanh, NXB Khoa hoc va Ky thuat. 1996. Dam, Nguyen H6ng. Van tdi ngoai thumg. Throng Dai hoc Ngoul thtrang. 1987. Dan, Nguyen Trong. Ngorr ngi? hop dong thu'ung mai Anh My. Sinh hoat khoa hoc trubng Dal. hoc Ngoai thtrong. 1993. Dan, Nguyen Trong. Cau, menh de va ngi? trong hop eking thuzing mai quae re'. Ky y6u HOi nghi Khoa hoc 1c'T ni4rn 30 nam Vien ngOn ngir hoc V* Nam. 1993. Dan, Nguyen Trong. The language of business correspondence in English. NXB Gido duc. Ha NO. 1992. Groner, Sammel B. Modern Business Law. Reston. 1983 Mc (Draw Hill - 1992. Gifis, Steven H. Law Dictionary, Third Ed. New York, 1992. Nguyen Th6 et al. Ter dien Phap luat Anh Viet. NXB KHXH. 1992. Federation Internationale des Ingenieurs (FIDIC): Conditions of Contract - 1987 International Chamber of Commerce: + Force Majeure and Hardship. Paris. ICC. 1984. 7 +Guide to Penalty and Liquidated Damages Clauses. Paris ICC. 1990. + Incoterms - Paris ICC. 2000. +Model forms for Issuing Contract guarantees Paris. ICC - 1992. + Rules of Concilliation and Arbitration. Paris. ICC. 1988. Ma, Nguyen Thi va Thiet, Hoang Van. Phap ly dai cumig. TriOng Dai hoc Ngoai thuong. NOi. 1991 Ma, Nguyen Thi va Hoang Van: Nhil'ng van de phap li trong ngoai thumg. TrtOng Dai hoc Ngoai diming. 1996. Pinnels, James. International Procurement Contracts. Prodec. Helsinki. 1991. Sanderson, Steve. Ed. Standard Legal Forms and Agreements for Canadian business. Canada 1989. Staple, James G. et al. "Know - how in the united States" in the know - how contract in Germany, Japan and the United States Ed. Herbert Stumpf Deventer: Kluwer. 1984. Tixu, Vu Hiru. Tdchdc ky thugt Ngoai thurnig. Trtthng Dai hoc Ngoai thuang. Ha NOi, 1991. White, James, et al - Uniform Commercial Code. St Paul West. 1980. Trinh, Dinh Xuan. tay thank loan Quo . c Trubng Dai hoc Ngoai thtrong Ha NO. 1991 Bo lugt Dan su' dia nu& Cong hoa xar 110i chi nghig Viet Nam. Vietnam Law & Legal Forum. 1996. Ludt thumig mai cua niffrc COng hoa xd hgi chi nghra Viet Nam. 1996.
Legal writings on Foreign Investment in Vietnam.
SCCI. 1992.
COng uOc Vien 1980 ye Hop (long mua ban QuCic to Paris. 1980.
8
HOW TO WORK WITH THE BOOK
This book is, as mentioned, meant to be used, firstly by commerce
students at the Hanoi Foreign Trade University and otber business
persons. The focus of the book is on both the language and other legal
aspects of contracts.
Anyone who wishes to use the book effeciently should, first of all, attain
a fairly advanced level of English and then have a good understanding of
such key subjects as:
- Laws applied to international business operations
- Foreign Trade Organizations and Techniques
- International Payment
- Shipping, Transport and Insurance.
In order to understand, at the beginning, and be able to apply the contract
terms and conditions, the students, readers and users are required to work
through the book starting from Part I.
The working phases are recommended as follows:
Phase 1:
- Understanding technical terms
- Being able to analyze clause structure
- Understanding every single grammatical unit.
Phase 2:
- Understanding legal and technical aspects as explained in each
part
- Reading sample provisions
- Reading and understanding short contracts, and then