The Hardship Clause as a Solution for the Risk of Frustrated Contract in Viet Nam

Abstract

This article has two aims. Firstly, it critically analyses all major legal aspects of the Viet Nam’s hardship clause that can be used in a contract to protect contractual parties. Secondly, it derives the possible adjustment or interpretation toward the Vietnam’s hardship clause to improve its applicability and practicality while giving the optimal approach toward minimizing the risk of a contractual party through applying the hardship clause. European States and international private laws present a comprehensive evolution of its hardship clauses through numerous cases spreading across major historical events. It is hoped that the best practices can be adopted for any party wanting to establish a long-term trade in Viet Nam so such party can take the most relevant option from the Vietnam’s legal system.