Rights and obligations of parties to option contracts

Article 66.- Rights and obligations of parties to option contracts

Set-up-company-in-vietnam-Vinasc21. The call option or put option purchaser shall have to pay for option purchase in order to become call option or put option holder. The sum of money to be paid for option purchase shall be agreed upon by the parties.

2. The call option holder has the right to purchase but is not obliged to purchase goods ascertained in the contract. Where the call option holder decides to perform the contract, the seller shall be obliged to sell goods to the call option holder. The seller that has no goods to deliver shall have to pay to the call option holder a sum of money equal to the difference between the price agreed upon in the contract and the market price announced by the Goods Exchange at the time the contract is performed.

3. The put option holder has the right to sell but is not obliged to sell goods ascertained in the contract. Where the put option holder decides to perform the contract, the purchaser shall be obliged to purchase goods from the put option holder. Where the purchaser does not purchase goods, it shall have to pay to the put option holder a sum of money equal to the difference between the market price announced by the Goods Exchange at the time the contract is performed and the price agreed upon in the contract.

4. Where the call option or put option holder decides not to perform the contract within the valid duration of the contract, the contract shall automatically be invalidated.

Article 67.- The Goods Exchange

1. The Goods Exchange has the following functions:

a/ Providing the material – technical conditions necessary for transactions of purchasing or selling goods;

b/ Running trading operations;

c/ Listing specific prices formed at the Goods Exchange at each specific time.

2. The Government shall specify the conditions for the establishment of the Goods Exchange, the powers and tasks of the Goods Exchange, and the approval of the operation charter of the Goods Exchange.

Article 68.- Goods traded at the Goods Exchange

Set-up-company-in-vietnam-Vinasc1The list of goods traded at the Goods Exchange shall be promulgated by the Trade Minister.

Article 69.- Brokers for purchase and sale of goods through the Goods Exchange

1. Brokers for purchase and sale of goods through the Goods Exchange shall be allowed to operate at the Goods Exchange only when they fully satisfy the conditions provided for by law. The Government shall specify the conditions for operation of brokers for the purchase and sale of goods through the Goods Exchange.

2. Brokers for purchase and sale of goods through the Goods Exchange shall be allowed to conduct only activities of brokerage for purchase and sale of goods through the Goods Exchange and must not be a party to a contract for purchase and sale of goods through the Goods Exchange.

3. Brokers for purchase and sale of goods through the Goods Exchange shall be obliged to deposit money at the Goods Exchange to secure the performance of their obligations arising in the course of goods purchase and sale brokerage activities. The deposit level shall be set by the Goods Exchange.