The effective date of a notice of unilateral contract termination under the 2015 civil code and recommendations from judicial practice

This article analyzes gaps in the legal framework regarding the effective date of a notice of unilateral contract termination under Articles 428 and 569 of the 2015 Civil Code. The study highlights inadequacies stemming from the criterion of "the time the other party receives the termination notice," which creates a conflict between the legitimate right of self-protection held by the party acting in good faith and the opportunistic, evasive, or dilatory behavior of the breaching party. The article provides an in-depth analysis of an innovative approach adopted by the Superior People's Court in Ho Chi Minh City in Judgment No. 294/2023/DS-PT, in which the Court recognized the service of procedural documents as the effective date of terminating a power-of-attorney contract. Based on this analysis, the author proposes a mechanism of legal presumption (Deemed Receipt) and solutions for improving contract drafting techniques for businesses.