Note when using form contracts with consumers

Form contracts with consumers are common legal tools in modern commercial transactions. Businesses often use this type of contract to save time and costs when dealing with a large number of customers. However, applying form contracts requires caution to ensure legal compliance and protect consumer rights. This article will analyze important notes when using form contracts in transactions with consumers.

The role of form contracts in business-consumer relations

Form contracts play an important role in regulating the relationship between businesses and consumers. This is a legal tool that helps businesses standardize transaction terms and at the same time create a legal framework to protect the rights of all parties.

A form contract is a contract that includes terms given by one party in a form for the other party to respond within a reasonable time. If the offeree replies in acceptance, it is considered as accepting the entire content of the contract according to the form provided by the offeror. This type of contract helps businesses save time and costs in the process of concluding contracts with a large number of customers.

For consumers, form contracts help them clearly understand their rights and obligations when using products and services. However, because it is pre-drafted by the business, the form contract may contain disadvantageous terms for consumers. Therefore, the law stipulates many conditions to ensure the fairness of this type of contract.

Legal basis: Clause 1, Article 405 of the Civil Code 2015.

Points to note when drafting form contracts

Ensure transparency and fairness in terms

When drafting form contracts, businesses need to ensure transparency and fairness in the terms. This requires using clear, easy-to-understand language and avoiding vague, confusing terms that can confuse consumers.

The terms in the contract need to be presented logically and have a clear structure. Businesses should use fonts and font sizes that are easy to read and avoid printing letters that are too small or using complex technical language. All technical terms should be clearly explained.

To ensure fairness, form contracts need to clearly stipulate the rights and obligations of both businesses and consumers. Terms must not favor any party and must comply with legal regulations on consumer protection.

Avoid using terms that are unfavorable to consumers

Businesses need to avoid using terms unfavorable to consumers in form contracts. This is a mandatory requirement according to the provisions of the Law on Consumer Rights Protection 2023 and related legal documents.

Business organizations and individuals are not allowed to stipulate the following unfavorable terms for consumers:

• Limit and exclude legal responsibilities of business organizations and individuals;
• Restrict or eliminate consumers’ rights to complain and sue;
• Allow business organizations and individuals to unilaterally change the provisions of contracts entered into with consumers;
• Allowing business organizations and individuals to unilaterally change general transaction conditions without stipulating the right to terminate contract performance for consumers;
• Allows business organizations and individuals to unilaterally determine that consumers do not fulfill one or several responsibilities;
• Allows business organizations and individuals to regulate or change prices at the time of delivering products, goods, or providing services;
• Allow business organizations and individuals to change prices during the process of providing continuous services without stipulating the right to terminate contract performance for consumers;
• Allow business organizations and individuals to explain contracts and general transaction conditions in cases where the terms of the contract and general transaction conditions are understood differently;
• Excludes the liability of business organizations and individuals in cases where business organizations and individuals sell products, goods, or provide services through third parties;
• Forcing consumers to comply with their responsibilities when business organizations and individuals fail to fulfill their responsibilities;
• Allowing business organizations and individuals to transfer responsibility to a third party without the consent of consumers;
• Regulations on sanctions that are more disadvantageous to consumers due to violation or termination of contract performance;
• Allowing business organizations and individuals to extend contracts agreed upon with consumers without stipulating the responsibility to notify in advance or without a mechanism for consumers to choose whether to extend or terminate the performance of the contract;
• Regulations that consumers must agree to allow business organizations and individuals to collect, store and use consumer information are a condition for entering into contracts and general transaction conditions;
• Regulations contrary to the principle of good faith according to the provisions of civil law.

Businesses should carefully review the terms of contracts to ensure they do not violate consumers’ rights. If there are unfavorable terms, they should be removed or adjusted to ensure a balance of interests between the parties.

Legal basis: Article 25 of the Law on Consumer Rights Protection 2023.

Comply with legal regulations on protecting consumer rights

The drafting and use of form contracts must strictly comply with legal regulations on protecting consumer rights. In particular, businesses need to pay attention to the regulations in the Law on Consumer Rights Protection 2023.

The model contract must include basic contents as prescribed in Clause 3, Article 23 of the Law on Consumer Protection of Consumer Rights 2023. In addition, businesses need to comply with regulations on contract registration and announcement. according to the form with the competent state management agency. This helps ensure legality and protect the rights of both businesses and consumers.

Process of applying form contracts in transactions

The process of applying model contracts in transactions with consumers needs to be carried out carefully and transparently. In the spirit of Article 405 of the Civil Code 2015, businesses must ensure that consumers have enough time and information to clearly understand the content of the contract before signing. Specifically:

The first step, businesses need to publicize the contract according to the form at the transaction place or on the company’s website. Consumers must be provided with a copy of the sample contract to study in advance. Businesses have the responsibility to clearly explain terms, especially those that are complex or may affect consumers’ rights.

During the negotiation process, businesses need to create conditions for consumers to negotiate and agree on terms. Any changes compared to the original contract form must be clearly noted and agreed to by both parties. Businesses cannot force consumers to accept unfavorable terms.

Consulting services on form contracts for businesses in Long Phan

Consulting services on form contracts are increasingly receiving attention from businesses. This is an effective solution to help businesses build and apply standard contracts safely, comply with regulations and protect their interests.

Long Phan provides comprehensive consulting services on form contracts for businesses. Services include reviewing and editing existing contracts or drafting new contracts to suit the business characteristics of each enterprise. A team of experienced experts will assist in drafting contracts in compliance with the latest legal regulations.

In addition, we will guide businesses through the process of applying sample contracts, how to handle arising situations and resolve disputes if any. This helps businesses be more confident in using standard contracts, while minimizing risks.

Form contracts are important legal tools in transactions with consumers. Proper application will bring benefits to both businesses and customers. For in-depth advice on this issue, customers can contact Long Phan via hotline 0906735386. Our team of experts is ready to assist you in developing and applying contracts according to a safe form, efficiency and compliance with the law.