Tuesday 17 January 2017

HIERARCHY ON APPLYING LAW RELATED TO REAL ESTATE BUSINESS IN VIETNAM



The Civil Code has always been identified as the Code is located, as a background laws, common law private legal system, especially in the implementation of three functions: (i) provision of the most basic problems, the most common related to all areas of civic life; (ii) orientation for the development of legal documents regulate specific civil relations, and (iii) when the special law contains no provision for a civil relationship, the provisions of the Civil Code the adjustments are applied to.

Therefore, specialized laws relating to land, properties, and real estate transactions must also not be contrary to the fundamental principles of the Civil Code. The order of application shall be as follow:

1. Where the provision in such laws are regulated or not regulated, but contrary to the provisions of the Civil Code, provisions of Civil code shall be applied.

2. Where there is a difference between the provisions of the Civil Code and international treaties which the Socialist Republic of Vietnam is a member of the same issues, then apply the provisions of international treaties. Land and properties are unique products so no international treaties is eligible to regulate it.

3. Where the parties do not agree and the law does not specify the possible application, practices shall be applied. The Vietnam Civil Code 2015 stipulates: Practices mean rules of conduct obvious to define rights and obligations of persons in specific civil relations, forming and repeating in a long time, recognized and applying generally in a region, race, or a community or a field of civil. However, the practice is not contrary to the fundamental principles.

4. Where an issue rises under scope of civil code which it is neither provided for by law nor agreed upon by the parties nor, nor applied by practices, analogy of law (quasi transaction is a form of analogy of law) shall apply.


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