Agreement on representation for traders

Article 142. Agreement on representation for traders

Set-up-company-in-vietnam-Vinasc2An agreement on representation for traders must be in writing or take other forms which have the same legal value.

Article 143. Scope of representation

Contracting parties may reach an agreement where the representative is authorized to represent, whether in part or in whole, trading activities that fall within the remit of the principal.

Article 144. Duration of representation for traders

1. Duration of representation shall be agreed upon by contracting parties.

2. In the absence of any agreement, the validity duration of representation ends in either case where the principal or the representative notifies the other of termination of the representation agreement.

3. Unless otherwise agreed, if the representative unilaterally gives notification of termination of an agreement on representation in accordance with Clause 2 of this Article, the representative shall be entitled to claim remunerations paid by the principal for conclusion of contracts with his/her own clients and other payments that (s)he would have received.

4. Where duration of representation ends in such a manner, referred to in Clause 2 of this Article, upon the request of the representative, the representative shall be deprived of the right to claim any remuneration for trades that (s)he would have received, unless otherwise agreed upon by contracting parties.

Article 145. Obligations of the representative

Unless otherwise agreed, the representative shall take on the following obligations:

1. Perform trades under the name, and for the interests of, the principal;

2. Inform the principal of opportunities for, and outcomes of, performance of trades which have been authorized;

3. Observe the principal’s instructions which are not in violation of laws and regulations.

4. Avoid performing trades under the name of his/her own or of any third party within the scope of representation;

5. Avoid disclosing or providing any non-party confidential information about his/her trades during the validity duration when his/her representation is rendered and within two years after that representation agreement is terminated;

6. Provide safe custody of assets or documents which have been entrusted to perform representation activities.

Article 146. Obligations of the principal

Set-up-company-in-vietnam-Vinasc1Unless otherwise agreed, the principal shall assume the following obligations:

1. Promptly inform the representative of conclusion of contracts that the representative has negotiated, execution of contracts that the representative has negotiated, approval or rejection of activities which do not fall within the agreed remit of the representative;

2. Provide assets, documents and any information necessary for the representative’s contractual representation activities;

3. Pay remunerations and other reasonable expenses to the representative;

4. Duly inform the representative of possibility that a contract may not be concluded or executed within the stated scope of representation.