In the applicable legal documents, there are no documents specifying the concept of an Economic Contract. But in fact, there are many enterprises still performing transactions in the form of economic contracts, and in the case of disputes, many enterprises are embarrassed to know the direction of handling economic contracts because they do not find provisions in the legal documents.
The following article will help you better understand the nature of economic contracts and how to resolve them when arising disputes of common economic contracts.
I / When do economic contract disputes arise?
Economic contracts are not specified in legal documents, however the parties to the economic contracts can fully use this form of contract because this is an agreement between the parties.
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Usually economic contracts will be used to adjust in business and trade relationships, specifically in transactions such as purchasing and selling, providing services, renting property, leasing premises, etc., and the subjects using this form of contract are businesses and traders. Depending on the needs of the parties, there are appropriate regulations that satisfy the interests of the two parties.
During the performance of the contract, if one of the parties does not comply with the provisions of the contract, the other party has the right to require the breaching party to comply with the agreement. Where the parties are unable to negotiate, they have the right to request an arbitration or a court to resolve it.
One of the characteristics of economic contracts is that the parties have the right to agree on dispute resolution agencies, can be commercial arbitrations or competent courts. This is different from civil relationships in which these civil relationships are only resolved in the People's Court. This facilitates businesses and traders in the dispute processing process to be more prompt, fair and proactive.
However, the parties need to make written agreements with the dispute settlement agencies, namely which commercial arbitrations shall have the right to resolve when disputes arise? These agreements may be established before or after disputes between the two parties. If the parties do not have these agreements, they only have the right to ask courts to settle.
II / Forms of resolving of economic contract disputes
In order to resolve economic contract disputes in accordance with the law, ensuring benefits, enterprises should consider the following forms:
1/ Resolution of economic contract disputes in the Commercial Arbitration
Condition: There are agreements to resolve in the form of arbitration by a particular Commercial Arbitration Center in particular written or specified in the economic contracts, which may be prescribed before or after disputes.
Procedure: Each Arbitration Center will have its own set of Arbitration rules with its own rules of specific procedures and settlement fees however will still have to comply with the settlement processes as prescribed in the Commercial Arbitration Law 2010, specifically:
Step 1: Filing petitions and accompanying documents;
Step 2: Notifying the lawsuit to the defendant, the defendant has the right to sue again and send self-defense statements to the Arbitration Center;
Step 3: Establishing Arbitral Tribunals;
Step 4: Making meditations if the parties request;
Step 5: Opening the sessions and making Arbitration’s judgements.
What differences from the form of the Commercial Arbitration is that judgments of the Arbitral Tribunals have final jurisdiction and are compulsory to enforce immediately to the parties without the mechanism of appeals as the form of Courts. However, these judgements can also be canceled by Courts if they violate the provisions of the law.
2/ Resolutions of economic contract disputes in the competent People's Court
If the parties do not have Arbitration agreements, when disputes arise, the parties can only ask the competent People's Court to resolve with the specific procedures, as follows:
Step 1: Filing petitions and accompanying documents;;
Step 2: If documents are valid and full, the Court will make notices to pay advance fees, according to which the plaintiffs will proceed to pay the advance fees and send the receipts of payment to the Court;
Step 3: The Court shall notify the resolution for cases and send it to the person concerned;
Step 4: Opening the reconciliation session between the parties, the approaching session and the publicity of evidences;
Step 5: Opening the trial of the first instance and make the judgments of the Trial Council;
Step 6: Appellating trial if the parties have appeals or the People's Procuracy has appeals.
Unlike the form of Commercial Arbitration, the first instance judgments of the Court do not take into force the law as soon as they are sentenced, but must undergo appellate trials. This leads to the resolution of cases by the Court being later than the form of dispute resolution by Commercial Arbitration.
Although the above two forms of dispute resolution have different advantages and disadvantages, they are for the purpose of resolving economic contract disputes. The parties may base on the financial situation, the actual cases as well as agreements between the parties to choose the appropriate form of resolution for their organizations and businesses.
If there are economic contract disputes, the parties should contact legal services providers for advice and support in the best way both in terms of form and content, helping to reduce the time of resolving cases as well as better understand their rights and obligations in each specific case, thereby oriented to solve the cases accordingly.
NPLaw Law Firm with a team of experienced lawyers and experts in the sector of resolving economic contracts will have sufficient knowledge and ability to advise and provide legal services to Clients.
