Pass of risks incurred to leased goods

Article 274.- Pass of risks incurred to leased goods

Set-up-company-in-vietnam-Vinasc2Where the parties agree on the pass of risk to the lessee but the point of time of passing risks is not determined, that point of time shall be determined as follows:

1. In cases where the lease contract involves the transportation of goods:

a/ If the contract does not require the leased goods to be delivered at a designated place, risks shall be passed to the lessee when the leased goods are delivered to the first carrier;

b/ If the contract requires the leased goods to be delivered at a designated place, risks shall be passed to the lessee or the person authorized by the lessee to receive the goods at such place;

2. In cases where the leased goods are received by a bailee other than a carrier for delivery, risks shall be passed to the lessee as soon as the bailee acknowledge the lessee’s right to possess the leased goods;

3. In other cases not mentioned in Clauses 1 and 2 of this Article, risks shall be passed to the lessee upon the receipt of the leased goods by the lessee.

Article 275.- Leased goods inappropriate to contracts

Where there is no specific agreement, goods shall be deemed inappropriate to contracts when such goods fall into one of the following cases:

1. They are suitable to common utility of goods of the same type;

2. They are not suitable to specific purposes which the lessee has informed the lessor or the lessor should have known at the time the contract was entered into;

3. Their quality is not the same as goods samples handed over by the lessor to the lessee.

Article 276.- Rejection of goods

Set-up-company-in-vietnam-Vinasc11. The lessor shall give the lessee a reasonable time after the receipt of goods for inspection thereof.

2. The lessee may reject the goods in the following cases:

a/ The lessor does not give conditions and a reasonable time to the lessee for inspecting the goods;

b/ When inspecting the goods, the lessee discovers that the goods are inappropriate to the contract.

Article 277.- Rectification or replacement of leased goods inappropriate to contracts

1. Where the lessee rejects leased goods inappropriate to the contract, if the time limit for delivery of goods has not yet expired, the lessor may promptly notify the lessee of the rectification or replacement of the goods and then perform such rectification or replacement of goods within the remaining duration.

2. Where the lessor, when performing the rectification mentioned in Clause 1 of this Article, causes inconvenience or unreasonable expenses to be borne by the lessee, the lessee shall have the right to request the lessor to remedy such inconvenience or pay such unreasonable expenses.