1. What is an economic contract?

“Economic contract” is a term mentioned in the Ordinance on Economic Contracts in 1989 to refer to a written agreement between parties on the performance of work for business purposes. The term “economic contract” is used until the Civil Code 2005 and the Commercial Law 2005 are effective. Currently, although the Ordinance on Economic Contracts 1989 is no longer in effect, the business community still uses the term “economic contract” to express transactions of buying and selling goods and providing services.

Thus, it can be understood that the term “economic contract” means “purchase agreement” or “service contract”. It is a legally binding written agreement between two or more parties to define the relationship, rights and obligations of the parties in the production, purchase and sale of goods, supply and use of services or other activities related to commercial purposes.

2. What are the contents and forms of an economic contract?

1. In terms of form: To ensure the highest legal binding, economic contracts should be signed in writing.

2. In terms of content: There are many compulsory terms in an economic contract to be effective in protecting the business and achieving its business goals. The terms that should or should not be included in a contract depend on the economic sector in which the business operates, the laws and regulations governing the transaction as well as the customs and practices prevailing in the industry. Some of the basic terms that need to be in place are as follows:

(1) Definitions clause;

(2) Clause on the purchase and sale of goods or provision of services, rights and obligations...;

(3) Clause on contract term;

(4) Clause on penalty for breach and compensation for damage;

(5) Clause on measures to secure the performance of the contract;

(6) Clause on contract notification;

(7) Clause on intellectual property rights;

(8) Clause on force majeure;

(9) Clause on complaints when violations or non-performance of the contract;

(10) Clause on dispute settlement;

(11) Clause on applicable law to dispute settlement;

(12) Clause on language.

3. Lawyers recommend matters to be paid attention when drafting an economic contract

1. 20 things needed to be noted and do when drafting an economic contract

(1) Use a sample contract for reference only;

(2) Name the contract based on the nature of the contractual relationship;

(3) Check names and related information between the parties;

(4) Check the status of the signing representative and documents related to that representative;

(5) Use simple and understandable sentences, words or phrases, indicating the main content of each clause;

(6) Put terms in a logical order, easy to see, to understand and to implement;

(7) Write number sequences in order for easy reference;

(8) Use words that is as simple and easy to understand as possible;

(9) Define all potentially confusing terms;

(10) Carefully consider when using punctuations;

(11) Carefully use punctuations and linking words such as “and”, “or”, “include but not limmited to”;

(12) Predict all possible situations during the performance of the contract;

(13) Re-read and correct drafted errors and inappropriate content;

(14) Write page number in the form of 1/20, 2/20… in order to avoid page omissions;

(15) Consult a lawyer any matters when drafting a contract;

(16) Request a lawyer to revise the whole contract before signing;

(17) Sign a contract with a blue ink pen or another color distinguishable from the photocopy;

(18) Initialize each page to avoid omission;

(19) Keep a copy before sending the contract to the partner;

(20) Notarize or authenticate if it is prescribed by law.

2. 10 things NOT to do when drafting an economic contract

(1) Having deceptive thoughts when drafting contracts;

(2) Using local words, fancy words, slang in the contract;

(3) Using too long and complicated sentences causing confusion;

(4) Repeating the content already specified, instead refer to the regulation;

(5) Reading the contract in a hurry, lack of concentration;

(6) Accepting the partner’s verbal explanation of unclear content;

(7) Performing obligations and work when the contract has not been signed or there is no contract;

(8) Accepting to change any content of the contract without a written request;

(9) Thinking that drafting a contract may create difficulties for partners;

(10) Using a sample contract without consulting a lawyer.

4. Why is it necessary to hire an Economic Contracts Lawyer?

The current situation shows that many businesses still often mechanically use sample contracts to sign with partners. A contract has real means only if it is drafted strictly, legally; accurately and sufficiently reflects the transaction relationship; contains contents suitable to the specific model of the business and ensures all the necessary contents to bring the best interests of the business. However, how to draft a contract to ensure legality and meet the above requirements is not easy at all. Based on the available template, we can all create a document that is considered “a contract”, but in reality, it lacks logic, rigor and persuasion. It may even contain risky and unenforceable terms. This not only creates potential risks for businesses but also has the potential to lead to complicated disputes, directly affecting the business activities of enterprises.

Economic Contract Lawyers are those who have in-depth legal expertise in counselling and drafting contracts in general and professional knowledge, practical experience in identifying risks and resolving disputes. Therefore, hiring an Economic Contract Lawyer to complete the contract for your business is very necessary. This is considered one of the enterprise’s risk management strategies. Instead of worrying about the dangers that may arise from the contract, businesses just need to focus on the business. Let an Economic Contract Lawyer resolve all the legalities of the contract, ensure that the contract has a binding legal value between the parties, help to minimize the risks and navigate any contractual disputes that may arise.

5. What does an Economic Contract Lawyer do?

Every business needs to be proactive in legal work, starting from the best completion of its economic contract. Please assign this important task to the Economic Contract Lawyer.

An Economic Contract Lawyer shall help businesses perform the following tasks:

(1) Counseling the current legal regulations on contracts;

(2) Evaluating aspects of both the content and form of the contract;

(3) Drafting or revising the contract;

(4) Predicting potential legal loopholes;

(5) Establishing the strictest and most logical terms;

(6) Ensuring that the contract is legally enforceable;

(7) Protecting businesses when there is a breach of contract.

6. Where can you find an Economic Contract Lawyer?

Economic Contract Lawyers are valuable companions of businesses. The need to hire an Economic Contract Lawyer is increasing more and more because businesses realize the value of protecting themselves when drafting and signing binding legal documents such as economic contracts. So where can business lawyer find a prestigious Economic Contract Lawyer?

With the motto “the more prevention, the less resolution” along with the mindset that “every business is unique”, Phong & Partners based on its legal research ability and experience shall prepare, orient and convey the logic and meticulousness to build the most optimal economic contract and achieve the most favorable results for the clients.

If You want to find a prestigious and dedicated Economic Contract Lawyer in Danang, Phong & Partners is ready to support You and confident to provide You with legal services most efficiently and optimally. Please contact us through the following information:

PHONG & PARTNERS LAW FIRM

Address: 6th floor, Thanh Loi building, 249 Nguyen Van Linh, Danang

Phone: 0236.3822678 - 0905.102425

Email: Phongpartnerslaw@gmail.com

Website: https://phong-partners.com

7. How much does it cost to hire an Economic Contract Lawyer?

The cost of hiring an Economic Contract Lawyer shall depend on the scope, goals and complexity of the contract. Depending on the needs of the clients, the charge for consulting services and drafting economic contracts can be an hourly or fixed fee. As follows:

• Hourly service charge: The lawyer shall estimate the total time to complete the consulting, drafting an economic contract, the more hours you use, the more charge you pay.

• Fixed service charge: Instead of paying an hourly service charge, clients can pay a fixed amount based on a certain scope of work.

Above is the content of the Economic Contract Lawyers. Phong & Partners is always ready to provide the best service to our clients.