Contract for a gift of property means an agreement between parties whereby the giver delivers its property and transfers its ownership rights to the recipient without requiring compensation and the recipient agrees to accept the gift. The parties are free to agree on the terms of the contract. In the article below, TNTP will provide some basic terms needed in a contract for gifts of property.
1. Information of the parties
The contract for gifts of property needs to stipulate the information of the parties, including the giver and the recipient. If one of the parties or all the parties is individual(s), the contact shall provide detailed information such as full name, citizen identification information, contact address, phone number, email, etc. If one of the parties or all parties is a legal entity, the contract shall provide the company name, head office, tax code, and information of the legal representative or authorized representative.
2. Subject matter of the contract
The parties shall stipulate the gifts of property, such as the property’s name, quantity, quality, original, value, etc. When gifting, the recipient needs to pay attention to the following conditions regarding the gifts of property: i) Property must be allowed to be traded; ii) The property must be owned by the person gifting the property; iii) The property is not in dispute over ownership; iv) Property is not being distrained for judgment enforcement.
3. Conditional gifts of property
The giver may require a recipient to perform one or several civil obligations prior to or after the giving of a gift. In the case of conditional gifts of property, these conditions need to be stipulated in the contract, including: what is the gift of property (the scope of work that the recipient needs to perform), the term of implementation (before or after receiving the gifts of property), in case the recipient does not comply, how to handle it, etc. The parties need to note that the conditions for giving a gift must not contravene the law or social morals.
4. Rights and obligations of the parties
The rights and obligations of the parties in the contract shall be agreed upon by the parties. The parties can refer to the regulations on the rights and obligations of the parties as follows:
(i) The giver has the rights and obligations as follows: (a) Request the recipient to perform one or more obligations before or after the donation; (b) Reclaim property and claim compensation for damages if the recipient fails to perform its obligations after the donation; (c) In cases where the recipient must perform its obligations before gifting if the recipient has fulfilled its obligations but the giver does not hand over the property, the giver must pay the obligations owed by the recipient made; (d) Deliver the property to the recipient on time and at the place agreed by the parties; and (e) Notify the recipient of defects in the gifts of property. If the giver reports that the property is defective without notifying it, he/she must be liable for compensating for any damage caused to the recipient.
(ii) The recipient has the rights and obligations as follows: (a) Receive the gifts of property; (b) Perform the conditional gifts of property; (c) Repay the property and compensate the giver for damage if the obligation is not fulfilled after the donation.
5. Time limit for delivery and transfer of ownership of donated property
The parties need to agree in the contract on the specific time for the giver to hand over the property to the recipient with the time to transfer ownership of the gifts of property. This provision is quite important because it is the basis for determining the effective date of the contract for gifts of property in some cases.
6. Location and method of transfer
The parties agree in the contract on the location and method of property transfer. Normally, the transfer method will be prescribed for the gifts of property that are movable property.
7. Provisions related to property registration
For property that must be registered for ownership, the parties should agree in the contract on the parties’ liability in registering the gifts of property at the competent authority, as well as the liability of the parties on taxes and fees related to gifting property.
8. Dispute resolution
In the contract, the parties need to agree on the method of resolution when a dispute occurs, such as negotiation, conciliation, or dispute resolution by arbitration or court. In addition, if the contact has foreign elements, the parties need to pay attention to further agreement on applicable law.
Above is the content of the article “Instructions for drafting the basic contents of the contacts for gifts of property”. Hope the above sharing is useful for those interested in this issue.