Thirdly, the termination of a contract is not illegal, as for example. B the deception of others or the assistance of a person, in order to obtain an unfair advantage and/or penalize third parties, for example. B the repayment of a mortgage in order to create the priority of liquidation of the secured creditor in respect of the mortgaged assets. Many jurisdictions allow contracts whose effective date is before the date of signing of the documents. This is usually called “retrodating”. Just because you`re able to return a contract near you doesn`t mean it`s a good idea to do so. Downgrading a contract can have some negative effects. There may be potential drawbacks: Article 401.1 of the Civil Code of Vietnam 2015 provides that a legally concluded contract takes effect from the date it is concluded, unless otherwise agreed or provided for by law.” If the document adds something that “should have been done” but was not done, usually for tax or similar reasons, then the position is simple. For example, if a seller sold their home in December, the seller could have benefited from certain tax benefits. However, he does not realize it until January and therefore wishes to return in December. The event did not occur during the period necessary for the performance, so there is an attempt to pretend to have done so.
This is a fraud to the tax authorities, a crime, and it is likely that the lawyer who drafted the document will be disciplined by his regulator and perhaps also accused of complicity in conspiracy. For obvious reasons, any request to return a document for these reasons should be categorically rejected. Backdating is the practice of marking a document, whether it`s a check, contract, or other legally binding document, with a date that is before what it should be. Backdating is usually not allowed and can even be illegal or fraudulent depending on the situation. But sometimes the return can be acceptable. However, the parties concerned must give their consent. First, the contract must acknowledge the existence of the contractual obligations of the party concerned, the performance of which has already begun at the time of signing the contract. In this sense, recognition could constitute an exception to the rule of “establishment” (obligations) under Article 385 of the Civil Code cited in 2015. Are the entry into force agreements legal and applicable in the two cases mentioned above? Interestingly, the answer remains somewhat controversial due to the ambiguity of an article of its civil code under Vietnamese law.
Contractual risk management therefore requires a correct understanding of Vietnamese contract law as well as an understanding of the country`s legal practice. . . .