Unit 14 PROVISIONS ON THE PARTIES

- Identification  
- Notices  
- Regulation of assignment  

1. Identification  

Case study:

Ms. X runs a company in Vietnam called Greatcoats Ltd. The company makes lightweight
waterproof clothing. She is visited in her factory by Abdul Osman, a Hong Kong company.
On Abdul’s business card, he is described as the managing director of Hong Kong
International Incorporated, an import-export trading house. After a tough negotiation, Abdul
agrees to buy 10,000 worth of X’s production, payment at 30 days against invoice. He says
that he will put the contract in the mail as soon as he is back in his office. The contract duly
arrives, signed by Abdul on behalf of International & Co. Ms. X delivers the goods and
sends the invoice

In the contract, the parties are identified as below:

This agreement is made on XXX between:

- Hong Kong International Incorporated, 17 Victoria road, Kowton, Hongkong

Represented by Mr. Abdul Osman, Managing Director
Hereinafter referred to as “The Buyer”
And
- Greatcoasts Ltd, 72 Nam Ky Khoi Nghia, Dist. 3
HCM City, Vietnam
Represented by Ms. X, Director
Hereinafter referred to as “The Seller”,
It is hereby agreed…
What problem arise?

- Ms. X received no payment after her delivery of goods to Hongkong

- She tried to contact Mr. Abdul Osman but could not
- She went to Hong Kong to find the company for legal action, but the so called “Hong
Kong International Incorporated” was not available

How to check the identification of the other party?

- Concerned banks
- Consulates (Lãnh sự quán), Notaries (công chứng viên), Chamber of Commerce, and
any other available resources

Notes of identification in a contract  

(1) For companies and LLPs, identify them using their:  
- full legal name;  
- registered office address;  
- company registration number (số đăng ký của công ty); and  
- country of incorporation.  
(2) For sole traders, identify them using:  
- their trading name (tên thương mại);  
- the full name of the individual concerned;  
- the current address of the individual concerned; and some unique identifier (such as a
national ID number or  passport number)  

1.1 The names of the Parties  

The principle:  
- The official, registered names of the parties should appear at the head of the
contract. 
- The “hereinafter-called” wording saves space and prevents legal problems
caused by mistyping.  E.g.:  
- Using the short form for a specific name  
 “The Smith, Jones, Wrangel and Ironside Supply Company Inc. A corporation organized
and existing under  the laws of the State of the Delaware, USA, having offices in_______
San Francisco, California, hereinafter  called “SMITH”.”  
- Using the short form for Generic description  
 “The Docklands Procurement Company, a corporation organized and existing under the
laws of the republic of  Verbena having offices at ____Port Mary, Southampton, United
Kingdom, hereinafter called “BUYER”  

1.2. Signatures  
- Traditional way:  

“In Witness Whereof  

We have this 16th day of March 2003 made and signed this
Agreement…” 

- Anglo-American contracts-includes mention of a seal  

“In Witness Whereof   

The parties hereto have set their hands and sealed this 16th day of March 2003
…” 

In the Anglo-American world, simple formulas are gaining favor.  

THE PARTIES, INTENDING TO BE LEGALLY BOUND, have executed this agreement

as of the date first set  forth above. 

2. Notices  
- A “notice” is any formal notification required by the contract 
- The Notices clause should defines:  
(a) form of notice;  
(b) how notice may be made;  
(c) the address  
(c) when the notice is deemed to have been received.  
Specimen clause  

Notices  
Notices served by one party to the other under the Contract are valid only if sent by
registered mail (DHL) and  signed. Such notices are to be sent to the following
addresses:  
Supplier: (address)  
Purchaser: (address) 

3. Assignment of Rights and duties  

- Usually NOT allowed to avoid any potential problems  
- In international contracts, try to exclude both assignment of rights and delegation of duties
without your written consent  (sự đồng ý bằng văn bản)
Specimen clause  
Assignment of Rights, Delegation of Duties  
The rights under this Contract may not be assigned nor the duties delegated by either party
without the prior written consent of the other party.  

Practice 1 Distinguishing meaning  

Which word in each group is the odd one out? You may need to consult a dictionary to
distinguish the  differences in meaning.  

1 duty (nghĩa vụ) right (quyền) responsibility obligation  

2 intent (mục đích) objective intention intensity (độ mạnh) 
3 compose (soạn thảo) draft write enlist  
4 convince (thuyết phục) propose (đề nghị) induce persuade  
5 appeal (kháng cáo) elect (lựa chọn) select choose 

Practice 2 Word choice  

These sentences are from a tenant's Right of Assignment document. In each case, choose
the correct word or  phrase to complete them.  
1 Notwithstanding anything to the contrast / contrary (sự trái ngược) / opposition (sự đối
lập) contained in the lease, Tenant can / may /  shall have the following rights with respect
to assignment, transfer or sub-lease (referred to / in / as hereinafter  as a ‘Transfer’) of the
demised premises.  
2 Landlord agrees that it will not unreasonably withdraw / rebut / withhold its approval to
any Transfer of the  demised premises or any part thereof/ thereafter / thereunder, provided
such Transfer shall be subject to all of  the terms and circumstances / conditions /
inclusions of the lease.  
3 Tenant shall waive / have / own the right to perform any of the following acts without the
necessity to request  or obtain Landlord’s refusal / withdrawal / approval therefor.  
4 Transfer the demised premises or any portion thereof to / from / at any ‘affiliate
company’. An affiliate  company shall mean, for purposes of this Article 49, any
corporation, partnership or other business entirety /  entreaty / entity under common control
and ownership with the Tenant, or with the parent or any subsidiary of  the Tenant. 

Practice 3 Prepositions with contract  

1 Complete the phrases below using the correct preposition in the box. You may need to
consult a dictionary.  

Against from to (x4) under upon 

1 the parties______to__________ a contract  

2 pursuant_______to_________ the contract  (tuân theo hợp đồng)
3 to have rights and obligations_______under_________a contract  
4 to benefit______from__________ the contract.  
5 to assign rights or delegate duties______to__________ a third party  
6 to enforce a contract_____against___________ someone  
7 a third-party beneficiary______to__________ a contract  
8 in reliance______upon__________ the contract  

Practice 4 Read the text and answer the questions  

Basic concepts associated with assignment and third-party rights.  

Generally, a contract operates to confer rights and impose duties only on the parties to the
contract and no other  parties. The principle that follows from this is that third parties have
no rights and, as such, cannot enforce contractual provisions. This contractual relationship
is summed up in the term privity of contract. However, in  many jurisdictions, there are two
exceptions to this general rule: the first is when the original contract provides  for rights to
be conferred on a third party, and the second is when contractual rights and duties are
transferred to  a third party at a later date.  

When speaking of the first type of situation, lawyers generally refer to third-party
beneficiary contracts. The  most common form of this type of contract is where party A
enters into a valid contract with party B which  stipulates that party B shall render
performance for the benefit of party C, i.e. the third-party beneficiary. No  problems arise if
party B performs. But what happens when party B fails to perform? Have rights been
vested in  party C such that C can enforce the contract, or must party A do so? In many
jurisdictions, this problem is  addressed through a determination of whether the contract
expresses an intent to create a legally enforceable  right in the third party. However, must
the intent be from both parties to the agreement (A and B) or just the  recipient of the
promise to be enforced, i.e. the promisee (A) as opposed to the promisor (B)? The courts
usually  look to the intent of the promisee and ask the question: According to the contract,
who was to receive the  benefit of the promise, the promisee or a third party directly?  

In deciding the promisee’s intent, the courts look at the following factors: (1) is the third
party identified in the  contract? (2) is performance to be made directly to the third party?
(3) does the third party have any rights  (specific or general) under the contract? and (4) is
there any relationship between the promisee and the third  party such that it could be
inferred that the promisee wished to enter into a contract for the benefit of the third  party?
Of course, the greater the number of times the court answers ‘yes' to the above questions,
the more likely  it is that the court will rule that the third party is an intended beneficiary,
and thus entitled to enforce the  contract, as opposed to an incidental beneficiary.  

In the second case mentioned above, rights and duties are transferred after the original
contract has been signed.  If in the original contract the transferring party (A) is owed a
right by the non-transferring party (B), then A is  known as the obligee and B is the obligor
(người thực hiện ngvu). However, if in the original contract A owes B a duty, then A is 
known as the obligor and B the obligee. When it is not specified whether rights or duties are
being transferred,  the term assignor can be used for A, who attempts to transfer his rights
and/or duties under the contract to a third party (C, the assignee). If a right is being
transferred, C becomes the obligee in place of A. (Although this  does not necessarily
release A from any obligations to B under the original contract.) If a duty is being 
transferred, A is known as the delegator, while C is referred to as the delegate. The term
assignment of contract can mean several different things. This term is ambiguous, as it does
not indicate whether there is both an  assignment of rights and a delegation of duties. In
everyday usage, it generally means that both are applicable.  However, in the interests of
precision, the term ‘to assign' should really be reserved specifically for the transfer  of
rights, and the term ‘to delegate' should be used in connection with the transfer of duties
(and therefore with  performance). This distinction is crucial because, while an obligee can
rid himself of a right merely by making  an effective assignment, an obligor cannot rid
himself of a duty by the same means. Generally, in order for the  obligor to discharge his
duties under the contract through assignment, the obligee must first release him from  his
obligations under the contract. When this takes place, there is a novation of the original
contract, in which  the obligor’s position is taken on by a new party.  

The right to assign is generally governed by an assignment clause in the contract, the
enforceability of which  depends on many factors, including the particular wording of the
clause, the nature of the obligations to be  performed and the nature of the contract.  

Questions  
1. Decide the following statements if they are True or False  
1. A third-party beneficiary contract is one which intends for someone who is not a party to
that contract to  benefit from the contract.  T
2. The term privity of contract refers to the relationship which exists between the immediate
parties to a  contract.  T
3. The transfer of rights under a contract is known as delegation.  F
4. Novation is the renewal of a contract by the contracting parties.  F

2. Complete the text below using the words in the box.  

assignment (x3) benefits novation (x4) parties third party 

1)___Novation____ is a means by which one party to a contract totally removes himself
from the contract by  transferring not only all of the 2)___benefits___conferred by that
contract, but also all of the obligations. The  3)___third party_____replaces the original
party as a party to the contract. Following 4)__novation____ the other  contracting party is
left in the same position as he was in before it was carried out, except that there is a new  
obligor. A 5) __novation_______ requires the agreement of all three parties. In contrast, an
6) ___assignment_______ refers  to transfer of a right (and sometimes, in general speak,
obligations) of one person to another. 7)__Assignment______  differs from novation in that
the 8)______parties_____ to the contract do not change. Most rights and obligations are 
capable of 9)____assignment____, but not all are capable of 10)____novation_____  

3. Complete these verb-noun collocations as they appear in the text. Then express the
meaning of each phrase in  your own words. The first has been done as an example. 
1. confer (rights) (paragraph 1)  
This means to give rights to someone in a contract.  
2. impose duties (paragraph 1) 
Give duties to someone in a contract 
3. enforce contractual provisions (paragraph 1)  
This means to make someone do or not do something as stated in a contract
4. render performance (paragraph 2) 
This means to do or not do something as stated in a contract
5. delegate duties (paragraph 4)  
6. assign rights (paragraph 4)  

Practice 5 English- Vietnamese translation  

1. Entire agreement:This Contract sets out the entire agreement between the Parties.
Neither party has entered  into this Contract in reliance upon any representation,
warranty or undertaking of the other party that is not  expressly set out or
referred to in this Contract. This Article shall not exclude any liability for
fraudulent  misrepresentation.  
 Điều khoản nhất trí toàn bộ: Hợp đồng này thiết lập điều khoản nhất trí toàn bộ giữa các
bên. Không bên nào tham gia vào Hợp đồng này phụ thuộc vào sự thay mặt, sự bảo đảm
hoặc cam kết nào của bên kia mà không được quy định rõ ràng trong Hợp đồng. Điều
khoản này không loại trừ bất kỳ trách nhiệm pháp lý nào đối với việc trình bày sai sự thật

2. Notices: Any notice under this Contract shall be in writing (which may include e-
mail) and may be served by  leaving it or sending it to the address of the other party as
specified in Article 13.2 below, in a manner that  ensures receipt of the notice can be
proved.  
- For the purposes of this Article, notification details are the following, unless other
details have been duly  notified in accordance with this Article.  
 Chú ý: Mọi thông báo theo Hợp đồng này phải được thực hiện dưới dạng văn bản (có
thể bao gồm cả e-mail) và có thể được gửi bằng cách để lại hoặc gửi địa chỉ của bên kia như
được đề cập trong Điều 13.2 dưới đây, bảo đảm rằng có thể chứng minh đã nhận được hàng
hóa theo một mức độ nào đó
Để phù hợp với mục đích của Điều khoản này, chi tiết thông báo như sau, trừ khi các chi
tiết khác đã được thông báo hợp lệ theo Điều khoản này

2. Assignment of rights and duties: Neither party shall have the right to assign or
subcontract any of its  obligations or duties under this agreement without the prior
written consent of the other party, which consent  shall not be unreasonably
withheld or delayed.  
 Chuyển giao quyền và nghĩa vụ: không bên nào có quyền chuyển giao hay ký kết hợp
đồng phụ bất kỳ trách nhiệm hay nghĩa vụ nào của mình theo thỏa thuận này mà không
có sự đồng ý trước bằng văn bản của bên kia và sự đồng ý đó không được trì hoãn hay
từ chối bất hợp lý

Practice 6 Vietnamese-English translation 

1. Không bên nào được quyền chuyển giao hay ký kết hợp đồng phụ đối với bất cứ
trách nhiệm hay nghĩa vụ  nào của mình theo bản hợp đồng này.  
 Neither party shall have the right to assign or subcontract any of its obligations or duties
under this Contract
2. Hợp đồng này thay thế cho mọi thỏa thuận hay hiểu biết liên quan đến đối tượng của
Hợp đồng. Hợp đồng  này sẽ không được sửa chữa hay bổ sung trừ khi có sự thỏa thuận
của các bên bằng văn bản (kể cả văn bản thỏa  thuận bằng email)  
 This Contract supersedes any agreement or understanding relating to the subject matter
of the Contract. This Agreement shall not be amended or supplemented unless otherwise
agreed by the parties in writing (including written agreement by email).
3. Không bên nào được quyền chuyển giao hay ký kết hợp đồng phụ đối với bất cứ trách
nhiệm nào của mình  theo bản hợp đồng này mà không có sự đồng ý trước bằng văn
bản của bên kia, sự đồng ý này sẽ do bên kia toàn quyền quyết định.  
 Neither party shall have the right to assign or subcontract any of its obligators under
this Contract without the prior written consent of other party, which consent shall be
given by the other party.
 Unit 15 CONTRACT STATUS
- Breach of contract and Remedies  
- The discharge of a contract (Termination, Rescission, Cancellation,
Impossibility and Frustration)  - Limitation of Liability  
- Language  

1. Breach of contract and Remedies  

1.1 Types of breach  

- Delay in _____delivery_______: compensated by liquidated damages  
- Failure to repair under ______warranty______ : lump sum compensation is paid.  
- Delay in_____payment____: compensated by the payment of interest.  
1.2 The aim: to avoid the cost and ____uncertainty________of legal proceedings  
1.3 General Considerations  
(1) For what breaches of contract are liquidated damages payable?  
(2) Must the injured party notify a breach to the party at fault?  
(3) What is the amount of damages payable?  
(4) What, if any, is the ceiling on the damages?  
(5) Are damages payable even if there is no loss?  
(6) Are damages payable even if there is no fault?  
(7) Is payment of damages an alternative to performance?  
(8) Is compensation available beyond liquidated damages?  

1.4 Types of damages  

03 common types:  
- Compensatory damages (bồi thường thiệt hại): compensation for actual loss  
- Liquidated damages (bồi thường thiệt hại ước tính): lump-sum compensation for predicted
losses
- Punitive Damages (bồi thường trừng phạt): Penalty => to force or terrorize the other
party  

  Compensatory   Liquidated   Punitive  

damages  damages  Damages  
 (Penalty) 

When    After breach Before breach Before breach

assessed 

How    On the basis of actual As a best guess at As a weapon of terror to

assessed  loss of harm possible loss ensure performance

Type of    Loss must be proved No proof of loss is No proof of loss is

 proof  penny by penny

How   By all courts  By all courts Not allowed by Anglo –

enforced  American courts

Lump-sum compensation:  
- Wrong party is required to make one payment for a number of separate items; one sum 
must be paid all at once rather than in several smaller amounts.  
03 common types:  
Type 1: Too High A Figure: The Penalty  
- A strong buyer sets a high figure for compensation, hoping to force the seller to deliver on
time or  perform some other duty. 
- The motive behind such a clause is said to be in terrorem (to “terrorize”).  
- The figure is unrelated to any actual harm the buyer suffers.  
Type 2: Fair Estimate of Probable Harm: Liquidated Damages  
- If a buyer and seller want to be fair, they try to decide a ______________figure for the
harm the buyer will  probably suffer.  
- It’s a guess, but a ______________once acceptable to both sides.  
- The motive is to avoid lengthy and expensive arguments about damages if there is a
______________to  perform.  
Type 3: Too Low a Figure: The Quasi-Indemnity  
- A strong seller can fix compensation ______________ ______________what is
reasonable.  - This stipulation, in effect, “indemnifies” the seller against (______________
him from) the payment of  compensation for his own breach of contract.  
Notes  
- To avoid the cost and uncertainty of legal proceedings, many contracts regulate the
consequences of breach  of contract.  
- The most common breaches are in the areas of payment, delivery and failure to repair
under warranty. 
- A loss caused by a failure to pay on time is compensated by the payment of interest. 
- A loss caused by late delivery or breach of warranty is not easily quantified. So lump-
sum  compensation is normal.  
- The lump-sum is maybe set too high (penalty), about right (liquidated damages), or too
low (quasi-indemnity).  The motive behind the penalty is to force (“terrorize’) one party
into full performance. 
- A penalty is not enforceable in Common courts though the quasi-indemnity is usually 
enforced.  
- Compensatory damages (exact compensation for loss suffered) are assessed after the loss
or damage has  occurred; every penny of loss must be proved.  

1.5 Liquidated Damages: Some Problems  

The principle:  
- National laws differ widely in their treatment of damages; few generalizations are
possible. 
- Most questions relating to damages are normally, disposive: the parties can make
whatever  arrangements they wish.  
- Clear contracts will regulate all potential problems.  
Problems  
(1) Are Liquidated Damages payable when there is no loss?  
The principle:  
- If an objective condition occurs (for example, delivery is a week late) the party at fault
will compensate the  injured party, usually by paying money.  
- If there is no loss, national law attitudes vary. Under American law, a court usually
enforces the damages  clause if the figure is a fair estimate-even with or without loss.  
- To avoid the uncertainty of different judgments, parties should have the following typical
clause:  “Payment of liquidated damages is contingent exclusively upon late delivery of the
goods; in no case shall the  buyer be required to substantiate any claim for payment of
liquidated damages with proof of loss or damage.”  
(2) Are Liquidated Damages payable when there is no fault?  
- If late delivery (or whatever) occurs but is not the fault of the supplier, must the supplier
still pay liquidated  damages? 02 common excusable cases  
+ Grace Period 
+ Force majeure  
Specimen clause  

“Liquidated Damages  
If the Seller fails to supply any or all of the Goods within the time period specified in the
Contract for reasons  for which he is at fault, save the case of Force Majeure, then the
Buyer shall deduct from the Contract Price per  week of delay, as liquidated damages, a
sum equivalent to one half percent of the delivered price of the delayed  Goods….” 

2. The discharge of a contract  

Termination, Rescission, Cancellation, Impossibility and Frustration  
2.1 Termination  
- Termination occurs when either party pursuant to a power created by agreement or law
puts an end to the  contract otherwise than for its breach.  
(1) Termination for convenience: occurs when one party (usually the buyer or the
employer) simply decides to  drop the contract. No reason is required.  
Specimen clause:  

Termination for Convenience of the Buyer  

The delivery of Goods under this Contract may be terminated by the Buyer in
accordance with this clause in  whole, or in part, whenever the Buyer shall determine
that such termination is in his best interest. Any such  termination shall be effected by
delivery to the Seller of a Notice of Termination specifying the extent to which  supply of
Goods under the Contract is terminated, and the date upon which such termination
becomes effective. 

- To avoid the uncertainty of different legal system, a terminated party should incorporate
the following clause  to get its rights.  
Specimen clause  
In the event of termination for whatever reason, the Seller shall be entitled to
receive full payment for  all goods and services delivered by the Seller at the
date of termination.  

(2) Termination for default: occurs when the contract names certain defaults which allow
one side (usually the  buyer) to terminate.  
Specimen clause:  

Termination for Default  

The Buyer may by written notice of default to the Seller terminate the whole or any part
of this Contract- in any  one of the following circumstances:  
(i) If the Seller fails to make delivery of the Goods within the time specified herein;  
(ii) If the Seller fails to perform any of the other provisions of this Contract, or so fails to
make progress as to  endanger performance of this Contract in accordance with its
terms, and in either of these two circumstances  does not cure such failure within a
period of 10 days. 

2.2. Cancellation  
- When one party breaches a contract, the other has the right to demand cancellation of the
contract. 
- In case of cancellation, the case will be put to court => it is messy, expensive and time-
consuming  
Notes:  
- A contract is terminated under a provision of the contract;  
- A contract is cancelled when one side has breached and the other simply
refuses to proceed. 
- Cancellation on trivial grounds makes no legal sense. 
- A fundamental breach goes "to the heart of the contract" and allows the other side to end
his  contract.  
2.3. Rescission  
- A contract is rescinded when the two parties agree to end a contract in case they are no
longer  interested in performing their contract.  
Notes:  
- Termination and cancellation are both one-sided procedures  
- Rescission is two-sided procedures  
2.4. Impossibility and Frustration  
- It occurred when one party finds it impossible or totally pointless to continue with it.  

3. Limitation of Liability  

The principle  
The four ways to limit parties’ liability:  
(1) Set a financial (or time) limit with a CEILING (mức trần) 
(2) Block a particular path with a ROADBLOCK  
(3) Block off all paths with an IRON CURTAIN  
(4) Make somebody else liable by SIGNPOSTING  

(1) The Ceiling  (mức trần)

- The seller pinpoints his exposure, i.e. his possible loss if the worst comes to the worst by
setting a ceiling on  payments for which he is liable:  
E.g.:  
“Delay  
For each week of delay, the Seller shall pay 1% of the contract price up to a maximum of
5% of the contract  price.”   
Or  
- Limit seller’s total liability under the contract:  

“Total Liability  
The total liability of the Seller for all claims for damages made against him by the Buyer
under this Contract or  otherwise shall not exceed 10% of the Contract price.” 

- Ceilings are set for a particular time 

“Liabilities after Expiration of Defects Liability Period  

The Seller shall have no liability to the Buyer for any loss or damage to the Buyer’s
physical property which  occurs after the expiration of the Defects Liability Period
unless caused by Gross Misconduct of the Seller” 

- Time-ceiling clause:  

“Notification of Defects  
If within twenty-one days of receipt of any consignment from the Seller, the Buyer fails to
notify the Seller that  the consignment is defective and submit defect, then the
consignment shall be deemed to comply in all respects  with the specifications and the
Buyer shall waive/forego all right to reject the consignment.” 

(2) The Roadblock  

- One common roadblock was Force Majeure 

“Force
Majeure 

If either party is prevented from, or delayed in, performing any duties under this Contract
by reason of a force  majeure event, then this party is not considered to be in default and
no remedy, be it under this contract or  otherwise, is available to the other party.” 

- Rejection of liability for consequential loss:  (loại bỏ trách nhiệm đối với thiệt hại có tính
chất hậu quả)

“Consequential Loss or damage   

Performance of the said duty to repair or replace defective items or to pay liquidated
damages in the agreed  amount shall constitute full and complete satisfaction of any
claim of the Buyer under this warranty. The Seller  shall not be liable to the Buyer by
way of compensation for any loss of profit or for any loss or consequential  damage that
may be suffered by the Buyer, or for any other loss, injury, harm or damage whatever
arising.” 

 (3) The Iron Curtain  

- Specimen clause  

“Comprehensiveness  
The rights and duties provided for in this Contract are the only rights and duties in case
and in consequence of  a breach of this Contract by either party and all further rights
and duties, be they under this Contract or  otherwise, are hereby expressly excluded.” 

(4) Changing the Road signs  

Taxation  
All income taxes, value added taxes, customs duties, excise charges, stamp duties or
other fees levied by any  government, governmental agency or similar authority shall be
borne exclusively by the party against whom  they are levied. However, in the event that
the government of the Buyer's country levies income taxes or value  added taxes against
the Seller, then the Buyer shall compensate and hold harmless the Seller against such 
levies. 

Notes:  
- The distribution of risk between the parties is, in general, ______________. They can
agree (almost) any  limitations of liability that suit them.  
- There are four basic techniques for limiting liability: setting a
______________disallowing a certain type of  claim, disallowing any claim not expressly
accepted, agreeing in ______________.  
- Limitation clauses are not enforced if they try to limit liability for ______________breach
of contract, fraud,  or breach of trust, or (in main systems) if they try to limit liability for
personal injury.  
- Limitations, especially if they are unusual in any way, must be
______________displayed, not hidden or  disguised.  
- Limitations imposed by General Conditions generally ______________the parties who
have done business on  that basic for some while.  
- In general, the courts look ______________at limitations of liability. If there is any doubt
about the language  or the content, the limitation is not enforced  

4. The Language of a Contract  

The principle  
- In international business practice, one language is commonly used. 
- For the sake of clarity when the contract is translated, the parties usually agree on a
definitive contract  language.  
- When two languages are equally effective, the arbitrator/judge shall decide which
language  shall be used. 
Specimen clause:  
Language  
The language of the Contract, of all Contract Documents, and of all correspondence and
other communication  between the parties shall be English.  

Practice 1. Types of Damages (Definitions by US Law)  

Match the types of damages with their definitions  

1. Actual A. a small amount (usually 6 cents or 1 dollar) awarded to a person

damages D whose  right has been violated but who has not sustained any actual
loss. In other  words, when no real damage is proven, the court may
award nominative  damages to the successful litigations of English
courts 

2. Incidental B. An amount that parties to a contract agree will be paid as damages in

damages E case  of breach 

3. Nominal C. Damages claimed on the basis of the hopeful expectations of the 

damages A complaining party, not on factual proof of loss; they are not permitted
in  determining the other party’s complaining to the complaining party. 

4. Speculative D. Damages proven to have resulted from the other party’s breach of
damages C contract;  this compensates a party for whatever is lost or injured 

5. Liquidated E. In addition to actual damages, other proved expenses incurred by a 

damages B wronged party in a breach of contract. It compensates a party for
expenses  directly related to the loss 

Practice 2 The discharge of a contract. Match the terms and the definitions below: 

1. Termination for  A. The violation of a law; in contracts, the failure to fulfill the
 convenience G terms of an  agreement 

2. Termination for B. The discharge of an otherwise enforceable agreement due

delay F to the breach of  one of the parties. It is expensive, messy and
unpredictable 

3. Termination for  C. This occurs when the contract names certain breaches
insolvency D which allow one side  (usually the buyer) to terminate. 

4. Termination for D. This occurs when one party in a bankrupt situation. The
default C receiver in  bankruptcy may elect, for the better protection of
creditors, to carry out a  contract that will increase the
bankrupt’s assets. 

5. Breach A E. The amicable discharge of a contract by mutual agreement. 

6. Cancellation B F. This occurs when the seller delivers goods or services later
than a certain  period agreed in a contract. 

7. Termination I G. This occurs when one party (usually the buyer) simply
decides to drop the  contract. 

8. Rescission E H. If goods or services simply cannot be delivered because of

a reason beyond  the seller’s control, the contract is discharged
by the seller. 

9. Frustration H I. If the whole sense of the contract is lost, the duty of

payment is discharged  by the buyer. 

10. Impossibility K K. This occurs when two parties find it impossible to continue
the performance  of a contract or they may find an interest in
dissolving their contract. 

Practice 3 Word choice  

Choose the correct word or phrase to complete each sentence in this liquidated damages
clause.  

LIQUIDATED DAMAGES FOR DELAYS  

Contractor understands and acknowledges that time shall be 1) on /of/ in the essence of this
contract and agrees  that the damages that may 2) cause / result from / bring about any
delay in finishing the work or parts 3)  thereby / thereof/ therein will be difficult, if not
impossible, to 4) change / avoid / ascertain. Thus, Contractor  agrees that if the work and
all parts thereof are not completed 5) in / at / on or before the dates stipulated for 
completion thereof, as extended in the manner specified 6) herein / hereof / hereafter,
Contractor 7) shall / may  / should pay to owner as stipulated, agreed and liquidated
damages and not as a penalty, the amount stated on  the cover sheet for each calendar day in
which the work or any portion thereof remains uncompleted after such  completion date as
so extended.  

Practice 4 Language use  

Complete the sentences below using the verb phrases in the box. In some cases, there is
more than one correct  answer.  

are hesitant to dismissed finding that held that rejected ruled that 

1. Courts are hesitant to uphold restraints on trade.  

2 The Court ruled that punitive damages can be awarded in a contract case.  
3 The Court rejected plaintiffs' claims that the disclosure constituted a breach of the parties' 
agreement, as reflected in the privacy policy the company posted on its website, not to
disclose such personal  information, finding that the posting of such a policy did not create
an enforceable agreement between  the parties.  

Practice 5 Fill in the gaps of the following clauses with the words given in the box. 

1. Termination for the Convenience of the Employer  

delivery effective interest performance terminated

The performance of work under this Contract may be terminated by the Employer in
accordance with this  clause in whole, or from time to time in part, whenever the Employer
shall determine that such termination is in  the best interest of the Employer. Any such
termination shall be effected by delivery to the  Contractor of a Notice of Termination
specifying the extent to which performance of work under the  Contract is terminated, and
the date upon which such termination becomes effective.  
2. Termination for default  

cure endanger fails part provisions written

 “The Employer may, by written notice of default to the Contractor, terminate the whole or
any  part of this contract in any one of the following circumstances:  
(i) If the Contractor fails to make delivery of the supplies or to perform the services within
the time  specified herein…  
(ii) If the Contractor fails to perform any of the other provisions of this Contract, or so
fails to make  progress as to emdanger performance of this Contract in accordance with its
terms, and in either of  these two circumstances does not cure such failure within a period
of 10 days…” 
3. Termination consequences:  

Arbitration full incurred necessary survive 

“In the event of Termination, the duties of the parties shall be as incurred up to the date
of  Termination. In particular, the Seller shall receive the full Price of any goods delivered
and  accepted by the Buyer. The provisions of this Contract dealing with defects liability,
Arbitration, and  such other provisions as are necessary in order to resolve any post-
Termination disputes shall survive Termination.”  

Practice 6 Translate the following clauses into Vietnamese  

1. Language: This Contract and the Contract documents are written in English. Any
translation into another  language is for information only and has no legal status.
Correspondence between the parties shall be  conducted exclusively in English.  
 Ngôn ngữ: Hợp đồng này và các tài liệu Hợp đồng được viết bằng Tiếng Anh. Mọi bản
dịch sang ngôn ngữ khác chỉ để tham khảo và không có tính chất pháp lý. Thư từ giữa các
bên sẽ được thực hiện hoàn toàn bằng Tiếng Anh
- The language of all designs, drawings, plans, specifications, and all other documentation
provided by the  Seller under this Contract shall be English; however, the training
materials and the maintenance manuals  specified in Article II shall be supplied in both an
English-language version and an Arabic version. In the event  of a discrepancy between
the two versions, the English-language version shall prevail
 Ngôn ngữ của tất cả thiết kế, bản vẽ, kế hoạch, quy cách phẩm chất và tất cả tài liệu khác
do Bên Bán cung cấp theo Hợp đồng này sẽ được viết bằng Tiếng Anh; tuy nhiên, các tài
liệu đào tạo và sổ hướng dẫn bảo dưỡng được quy định trong Điều II sẽ được cung cấp bằng
cả phiên bản Tiếng Anh và phiên bản tiếng Ả Rập. Trong trường hợp có sự sai biệt nào giữa
hai bản dịch này, bản Tiếng Anh sẽ được ưu tiên áp dụng.

2. Limitation of Liability: The Buyer’s sole remedies for claims of any kind with respect
to the Products  furnished under this Agreement and with respect to all other
performance by the Seller under or in connection  with this Agreement or with respect
to or in any way connected with the manufacture, sale, handling, use,  repair,
maintenance or replacement of the Products including liability arising out of contract,
strict liability,  negligence, or any other tort shall be limited to those remedies
prescribed in the warranty section of this  Agreement.  
 Giới hạn trách nhiệm pháp lý: Các biện pháp khắc phục duy nhất của Người mua đối với
các khiếu nại dưới bất kỳ hình thức nào liên quan đến Sản phẩm được cung cấp theo Thỏa
thuận này và đối với tất cả các hoạt động khác của Người bán theo hoặc liên quan đến Thỏa
thuận này hoặc đối với hoặc theo bất kỳ cách nào liên quan đến sản xuất, bán, xử lý, sử
dụng, sửa chữa, bảo trì hoặc thay thế Sản phẩm bao gồm trách nhiệm pháp lý phát sinh
ngoài hợp đồng, trách nhiệm nghiêm ngặt, sơ suất hoặc bất kỳ vi phạm nào khác sẽ được
giới hạn trong các biện pháp khắc phục được quy định trong phần bảo hành của Thỏa thuận
này. 

3. Product Liability: The Supplier shall fully indemnify and hold harmless the Purchaser
from and against from  any loss, liability or claim in respect of personal injury to, or
the death of, any person or any loss of or damage  to any property of any kind
whatsoever arising out of or in connection with the possession, ownership, use and 
operation of the Item by the Purchaser or any third party approved by the Purchaser
whether such Item is  installed in an Equipment or not.”  
 Trách nhiệm pháp lý đối với sản phẩm: Nhà Cung Cấp phải bồi thường và miễn trách
cho Bên Mua khỏi bất kỳ tổn thất, trách nhiệm hoặc khiếu nại nào liên quan đến thương
tích cá nhân, cái chết của bất kỳ người nào, bất kỳ tổn thất hoặc thiệt hại đối với tài sản
dưới bất kỳ hình thức nào phát sinh từ hoặc liên quan đến việc sở hữu, sử dụng và vận
 hành Mặt hàng bởi Bên Mua hoặc bất kỳ bên thứ ba nào được chấp thuận bởi Bên Mua
dù Mặt hàng đó có được lắp đặt trong Thiết bị hay không.

Unit 16 SETTLEMENT OF DISPUTES

Case study:  

Blue King Beer is a brewery in Verbena that exports about 40% of its production. Blue
King is negotiating with  a hotel chain in Esperanza to supply a range of "fancy" beers
suited to the taste of tourists. The minimum  contract price over a period of three years is
agreed as $400,000—about 5% of Blue King's turnover. During  negotiations the subject
of a settlement of disputes clause comes up. 

How would you advise the two sides when they ask you the following questions?  

1. Is it reasonable to omit a settlement of disputes clause completely?  

 No, a sizable contract should contain a clause on settlement of disputes

2. If no, should we specify arbitration or litigation? Why?  
 Arbitration. Be cheaper, quicker, and more businesslike. It will not put one side at
a real (or imagined) disadvantage before the national courts of the other
3. Should we add an amicable settlement provision? Why? 
 Yes. A serious and successful attempt at a amicable settlement can save a such
huge sum of money 

4. If yes, should this provision contain a detailed procedure for amicable

settlement?  
 Yes. A procedure in support of amicable settlement has been found to save
considerable legal costs and management time

5. If a contract specifies arbitration, where is the best place for the tribunal to
meet?  
UNSPECIFIED  
BUYER'S COUNTRY  
NEUTRAL COUNTRY  
EXPORTER'S COUNTRY  
COUNTRY OF THE DEFENDANT  
 The country of the defendant. This creates extra costs for the side wishing to begin the
dispute and thus makes amicable settlement more likely

6. Should we state that both sides accept any arbitral award as "final and
binding"?  
 Yes. It is always worth stating this even though such clauses are not always
enforceable

1. Approaches to settlement of disputes  

The principle  
- If parties do not specify a clear and detailed procedure for settling their disputes, this will
make such disputes unnecessarily bitter.  
- If a contract says nothing about the settlement of disputes then the courts will decide how
such  disputes will be settled.  

Common approaches  
- Amicable settlement  
- Conciliation  
- Arbitration  
- Litigation  

The advantages and disadvantages of each type of settlement. 

  AMICABLE   CONCILI-   ARBITRATION  LITIGATION 

SETTLEMENT  -ATION 

Third party is  (1) no (2) yes (3) yes  (4) yes 

 involved 

Decision is  (5) no (6) no  (7) yes/no  (8) yes 

enforceable 

Decision is (9)  (10)  (11)  (12) 

purely  legal 

Time-saving  (13) yes (14) yes  (15) no (16) no

Cost- (17) yes (18) yes  (19) yes  (20) no 

effectiveness 

Confidentiality  (21) yes (22) yes  (23) yes  (24) no 

2. Stipulations of settlement of disputes  

(1) Amicable settlement  (giải quyết bằng thương lượng hòa bình)

- Amicable settlement is most preferred by the parties because it is the quickest and
cheapest way. 
The Purchaser and the Supplier shall make every endeavour to resolve amicably by direct,
informal negotiation  any disagreement or dispute arising between them under, or in
connection with the Contract.  

(2) Conciliation  (hòa giải)

Procedures of conciliation:  
- Conciliation (or mediation) require a third party, a conciliator (or a mediator), trusted by
both parties to  sit down with them and try to reach an agreement.  
- The mediator has no authority to impose a settlement or to make a judgment  
- Proceedings of conciliation are short and informal; if there is goodwill on both sides, the
chance of a  fair solution is high.  
Specimen clause  

Procedure for amicable settlement shall be as follows:  

a. The parties shall agree a date and place for an amicable settlement meeting;  
b. Attending the meeting shall be one executive representing each party and
 one lawyer representing  each party;   
c. The lawyers shall not be allowed to speak at the meeting;   
d. The meeting shall take place in three sessions. In the first session, each party shall
state its position on the  subject of the disagreement. In the second session the parties
shall suggest ways of resolving the disagreement.  In the third session the parties shall
attempt finally to resolve the disagreement.  
In the event that the parties fail to resolve their disagreement amicably, they shall
proceed to arbitration on the  terms specified hereinafter. 

(3) Arbitration  
- When negotiating the arbitration clause of a contract, four practical questions should be
settled by the parties:  number of arbitrators, place of arbitration, the language of the
court, allocation of  arbitration fees.   
- To avoid the confusion of different legal provisions, the parties should agree that the
arbitral award is binding and rule out further appeal.  
Specimen clauses 

"All disputes arising out of or in connection with the present Contract shall be finally
settled by VIAC  (Vietnamese International Arbitration Centre) in Hochiminh city,
Vietnam. The Rules of VIAC shall apply, the  number of arbitrators shall be appointed in
accordance with the said Rules." 

Or  

Any dispute, controversy or claim arising out of or relating to this Contract, or the
breach, termination or  invalidity thereof, shall be settled by arbitration in accordance
with the UNCITRAL (United Nations  Commission on International Trade Law)
Arbitration Rules at present in force.  
The number of arbitrators shall be three. The place of settlement of disputes shall be …...
The language used by  the court in the settlement of disputes shall be English. In the
event of arbitration, each party shall bear its own  costs. Both parties agree to accept the
award of the court of arbitration as final and binding on them both, to  the exclusion of
all other remedies. 
(4) Litigation  
- Litigation is the most complicated, time-consuming, costly and public disclosed. 
- Its decision is legally binding, it is, therefore, required to be put into a contract as the final
settlement of  disputes in case other ways prove impossible.  

Specimen clause:  

All disputes, conflicts or discrepancies arising out of this Contract, which cannot be
settled by amicable  negotiation, shall be referred to the Economic Court of Hochiminh
City, Vietnam for final settlement. 

Practice 1 Read the text and answer the questions  

Alternative dispute resolution  

Alternative dispute resolution, often abbreviated to ADR, is well-established in a number of
jurisdictions,  including the USA, Canada and Australia. Over recent years, we’ve seen the
emergence of mediation  organisations and dispute resolvers, some on the Internet. In the
UK, ADR is positively promoted for use in a  wide range of civil disputes, including small
claims, family matters, construction or building contracts, and  complex international
commercial disputes. It’s generally proposed as a cost-effective alternative to the  litigation
process and entered into on a voluntary basis by disputants, or because of contractual
provisions, that  is, the conditions of a contract. Many commercial agreements now include
dispute resolution clauses in which  the contracting parties agree the method to be used if a
dispute occurs during the life of the contract. However,  parties may also be referred to
ADR by the court during the course of litigation. A Civil Procedure Rule  requires the UK
civil courts, as part of the case management process, to encourage and facilitate parties to
use  ADR procedure if appropriate. A National Mediation Helpline has also been set up to
provide advice by  telephone or online.  
Giải quyết tranh chấp thay thế, thường được viết tắt là ADR, được thiết lập tốt ở một số khu
vực pháp lý, bao gồm Hoa Kỳ, Canada và Úc. Trong những năm gần đây, chúng ta đã thấy
sự xuất hiện của các tổ chức hòa giải và người giải quyết tranh chấp, một số tổ chức trên
Internet. Tại Vương quốc Anh, ADR được quảng bá tích cực để sử dụng trong một loạt các
tranh chấp dân sự, bao gồm các khiếu nại nhỏ, các vấn đề gia đình, hợp đồng xây dựng
hoặc xây dựng và các tranh chấp thương mại quốc tế phức tạp. Nó thường được đề xuất như
một giải pháp thay thế hiệu quả về chi phí cho quá trình kiện tụng và được các bên tranh
chấp tham gia trên cơ sở tự nguyện hoặc do các điều khoản hợp đồng, nghĩa là các điều
kiện của hợp đồng. Nhiều thỏa thuận thương mại hiện nay bao gồm các điều khoản giải
quyết tranh chấp, trong đó các bên ký kết thỏa thuận phương pháp sẽ được sử dụng nếu
tranh chấp xảy ra trong thời hạn của hợp đồng. Tuy nhiên, các bên cũng có thể được tòa án
chuyển đến ADR trong quá trình tranh tụng. Quy tắc tố tụng dân sự yêu cầu các tòa án dân
sự Vương quốc Anh, như một phần của quá trình quản lý vụ việc, khuyến khích và tạo điều
kiện cho các bên sử dụng thủ tục ADR nếu thích hợp. Đường dây Trợ giúp Hòa giải Quốc
gia cũng đã được thiết lập để cung cấp lời khuyên qua điện thoại hoặc trực tuyến.

Use one word to complete the extract below  

1. Dispute Resolution Procedure  

1.1 General  
1.1.1 All disputes between the parties (1) arising out of or relating to this Agreement shall
be  referred, by either party , to the project board for (2) resolution.  
1.1.2 If any dispute cannot be (3) resolved by the project board within a maximum of 114
days after  it has been referred under Clause 1.1.1, that (4) dispute shall be (5)referred to
the [appropriate officer] of the [public sector client] and the [e.g. project manager] of the
(6) Contractor for  resolution.  
1.1.3 Work and activity to be carried out under this (7) Agreement/Contract shall not
cease or be delayed by this  dispute (8) resolution procedure.  
  
Practice 2 Explain why the following clauses are defective.  
1. All disputes arising from or in connection with this Contract, including any disputes of
the formation, validity  or breach of Contract, shall be referred to and settled by
Vietnamese International Arbitrator Centre (VIAC) at  the Vietnamese Chamber of
 Commerce and Industries in Ho Chi Minh City or the International Arbitration  Centre
in Singapore. The Rules of Conciliation and Arbitration of ICC shall be applied. 
 the choice of two arbitration centres will make it impossible for the parties to settle any
disputes
The wording:” The Rules of Conciliation and Arbitration of ICC” is not relevant, VIAC has
their own rules
Missing provisions: the language, place of arbitration, fees allocation, number of arbitration

2. Any dispute, controversy, or disagreement which proves impossible by amicable

settlement shall be referred  to the Vietnamese Chamber of Commerce and Industries
(Vietcochamber). Award(s) made by Vietcochamber  shall be final and binding the
parties. Arbitration fee shall be for the faulty party’s account. 
 vietcochamber is not an authorized entity to deal with arbitration

3. Any disputes or discrepancies which cannot be settled to the satisfaction of both parties
shall be arbitrated in  Vietnam under the law of Viet Nam. Arbitration Awards shall be
final and binding upon both parties, all  arbitration fees shall be borne by the losing
party. 
 Unclear. No authorized entity for arbitration has been defined 

4. All disputes arising from this Agreement shall be settled by arbitration in Ho Chi Minh
city under the Rules  of Conciliation and Arbitration of ICC.  
 Unclear, the name of the arbitral tribunal has not been defined

5. If any claims arise out of or in connection with this Contract, both parties agree to
settle amicably. Should it  be impossible to reach an agreement, the claims shall be
settled by the International Chamber of Commerce and  industries of Vietnam whose
awards shall be final and binding both the Seller and the Buyer. 
 Unclear, the so-called “International Chamber of Commerce and industries of Vietnam”
has not been existence in Vietnam
Vietcochamber is not an authorized entity to deal with claims

Practice 3 Use the words in the box to complete the following clauses of dispute settlement.
  1. Mediation  

authority, collectively, competent, equitable, proceedings, relating,

remedies, resolution, schedule  termination 

Except for 1 equitable actions seeking to enforce the provisions of Sections 8(a), 9, 10, 11
and 12 of this  Agreement which may be brought by a court in any 2 competent
jurisdiction, in the event a dispute, claim  or controversy arises between the parties 3
relating to the validity, interpretation, performance,  4 termination or breach of this
Agreement, (5 collectively referred to as “a Dispute”), the Parties agree  to hold a meeting
regarding the Dispute, attended by individuals with decision-making 6 authority, to 
attempt in good faith to negotiate a 7 resolution of the Dispute prior to pursuing other
available  8 remedies. If, within thirty (30) days after such meeting or after good faith
attempts to 9 schedule such a meeting have failed, the Parties have not succeeded in
negotiating a resolution of the Dispute; the  Dispute shall be resolved through legal 10
proceedings.  

2. Arbitration  

affiliated, agreeable, award, conclusions, confidential, experienced, hearing,

jurisdiction, proceeding,  reasonable 

All claims and disputes arising under or relating to this Agreement are to be settled by
binding arbitration in  [insert name of country] or another location mutually 1 agreeable to
the parties. The arbitration shall be  conducted on a 2 confidential basis pursuant to the
Commercial Arbitration Rules of the American  Arbitration Association. Any decision or 3
award as a result of any such arbitration 4 proceeding  shall be in writing and shall provide
an explanation for all 5 conclusions of law and fact and shall include the  assessment of
costs, expenses, and 6 reasonable attorneys' fees. Any such arbitration shall be conducted
by  an arbitrator 7 experienced in [insert industry or legal experience required for
arbitrator] and shall include a  written record of the arbitration 8 hearing. The parties
reserve the right to object to any individual who  shall be employed by or 9 affiliated with a
competing organization or entity. An award of arbitration may  be confirmed in a court of
competent 10 jurisdiction.  
Practice 4 English-Vietnamese translation  
1. Dispute resolution procedure  
Any dispute, controversy or claim arising out of or relating to this Contract, including its
conclusion,  interpretation, performance, breach, termination or invalidity, shall be finally
settled under the rules of [specify  the arbitration institution] by [specify the number of
arbitrators, e.g. sole arbitrator or, if appropriate, three  arbitrators] appointed in
accordance with the said rules. The place of arbitration shall be [specify]. The  language of
the arbitration shall be [specify].  

Quy trình giải quyết tranh chấp

Mọi tranh chấp, mâu thuẫn, khiếu nại phát sinh từ hoặc liên quan tới HĐ này, bao gồm kết
luận, giải thích, thực hiện, vi phạm, chấm dứt hoặc mất hiệu lực sẽ được giải quyết chung
thẩm theo các quy tắc của [tổ chức trọng tài] bởi [số lượng trọng tài] được chỉ định phù hợp
với quy tắc đề cập ở trên. Nơi diễn ra phân xử là […]. Ngôn ngữ được sử dụng là […]

2. Arbitration  
“Any dispute, controversy or claim arising out of or relating to this Contract, including its
conclusion,  interpretation, performance, breach, termination or invalidity, shall be finally
settled under the rules of  UNCITRAL [specify other rules] by [specify the number of
arbitrators, e.g. sole arbitrator or, if appropriate,  three arbitrators] appointed by [specify
name of appointing institution or person]. The place of arbitration shall  be [specify]. The
language of the arbitration shall be [specify]. ”]  

3. State courts  
“Any dispute, controversy or claim arising out of or relating to this Contract, in particular
its conclusion,  interpretation, performance, breach, termination or invalidity, shall be
finally settled by the courts of [specify  place and country] which shall have exclusive
jurisdiction.  
Mọi tranh chấp, mâu thuẫn, khiếu nại phát sinh từ hoặc liên quan tới Hợp đồng, cụ thể là
kết luận, giải thích, thực hiện, vi phạm, chấm dứt hoặc mất hiệu lực sẽ sẽ được giải quyết
chung thẩm bởi trọng tài [nơi và quốc gia], nơi có quyền tài phán riêng

Practice 5 Vietnamese-English translation  

1. Mọi tranh chấp phát sinh liên quan đến Hợp đồng này phải được giải quyết chung thẩm
theo Quy tắc Hòa  giải và Trọng tài của Phòng Thương Mại Quốc tế bởi 03 trọng tài
viên được chỉ định cho phù hợp với quy tắc  này.  
Any disputes arising out of or relating to this Contract shall be finally settled under the
rules of ICC at the International Commerce of Chamber by three arbitrators appointed in
accordance the said rule

2. Địa điểm xét xử trọng tài sẽ là thành phố Hồ Chí Minh. Ngôn ngữ trọng tài sẽ là tiếng
Anh. 
The place of settlement of dispute is Ho Chi Minh city. The language used by  the court
in the settlement of disputes shall be English

3. Trường hợp đưa ra trọng tài, mỗi bên sẽ tự chịu chi phí phần mình. 
In the event of arbitration, each party shall bear its own  costs

4. Trường hợp đưa ra trọng tài, hội đồng trọng tài sẽ xác định mức phí cho mỗi bên  
In the event of arbitration, arbitration tribunal shall dertermine the costs for each party

5. Trường hợp đưa ra trọng tài, trọng tài phán quyết bên nào thì bên đó phải chịu toàn bộ
chi phí cho cả hai bên. 
In the event of arbitration, all costs shall be borne by one party awarded by arbitrator