Decision No. 77/2002/QD-BNN guides on the model contract for the consumption of agricultural products, implemented pursuant to Decision No. 80/2002/QD-TTg dated June 24, 2002 of the Government Prime Minister.

Pursuant to …;

Guidelines on the model contract for the consumption of agricultural products in accordance with Decision No. 80/2002/QĐ-TTg dated June 24, 2002 of the Government Prime Minister

To implement the policy to encourage the consumption of agricultural products through contracts as stipulated in Decision No. 80/2002/QĐ-TTg dated June 24, 2002 of the Government Prime Minister, the Ministry of Agriculture and Rural Development provides guidelines on the model contract as follows:

I. REQUIREMENTS FOR THE CONTRACT ON THE CONSUMPTION OF AGRICULTURAL PRODUCTS

- The contract must reflect all the following contents: The basis for establishing the contract and some necessary information about the parties involved in signing the contract; the content agreed upon by the parties regarding the quantity of goods, quality standards, product specifications of goods, method, time, location of delivery and receipt of goods; conditions for the parties (if any) to create binding in the contract; payment methods for the contract; handling of risks that are unforeseeable during the implementation of the contract; material responsibility in implementing the contract; resolution of contract disputes; validity of the contract; legal signatures and seals of the parties signing the contract and units confirming or notarizing.

- The terms recorded in the contract must be clear, tight, and easy to understand. In cases where enterprises sign contracts with representatives of farming households, the representative must discuss with the farming household they represent to reach consensus.

- The signed contract must have confirmation from the People's Committee of the commune or notarization from the Notary Office of the district where the agricultural products are produced according to the contract. In all cases, it is necessary to notify the signed contract to the People's Committee of the commune and the Vietnam Farmers' Association in the project area for coordination in monitoring and supporting implementation.

II. EXPLANATION OF THE MODEL CONTRACT

1. Regarding the parties to the contract:

The subject of the contract for the consumption of agricultural products is the State-owned corporations, companies, cooperatives (referred to collectively as businesses consuming, processing, exporting) signing contracts to purchase agricultural products or sell materials with farming households, farms, representatives of farming households, and cooperatives regarding raw agricultural products or materials serving agricultural production (crops with seeds, fertilizers, pesticides, livestock with seeds, feed, veterinary drugs, etc.). Representatives of households must have a record of agreement appointing representatives of the households.

2. Regarding Article 1 of the contract:

The quantity of agricultural products must be accurately, clearly, and specifically recorded according to the agreement of the parties signing the contract and must be calculated based on the national measurement units for each type of goods.

3. Regarding Article 2 of the contract:

The quality, specifications, technical standards, size, color, taste, moisture, impurities of the goods must be clearly stated in the contract, but depending on the type of goods, both parties may agree on quality and specification conditions suitable for each other.

4. Regarding Article 3 of the contract:

The buyer pre-pays materials and transfers technology to the seller (if applicable),

Pre-payment of materials: Depending on the industry, it is necessary to specify the name, quantity, value, and method of delivering materials for each type.

Transfer of technology: Depending on the conditions, the buyer transfers technology to the seller to produce products meeting the buyer's requirements as stipulated in Article 2. The contract must clearly state the content of the transfer and the responsibilities of the related parties.

5. Regarding Article 4 of the contract:

Clearly define the schedule for delivery and receipt of goods in terms of quantity, location, and method of delivery for each batch or the entire package.

Outside the contract, the parties may further clarify the bidding forms from pre-paying materials and capital, schedules for delivery and receipt of agricultural products, regulations on the obligations of the parties when delivering goods, and measurement methods to determine the quantity and quality of products. The annex to the contract is a specific part inseparable from the contract and has the same legal effect as the main contract.

6. Regarding Article 5 of the contract:

Clearly state the payment method and deadline for the contract, either in batches or as a whole, taking into account the value of the pre-paid materials and capital (if applicable).

7. Regarding Article 6 of the contract:

In cases of unforeseeable risks such as natural disasters, epidemics, fires, or sudden market price fluctuations causing material damage to producers or processing, consumption, and export enterprises (one of the contracting parties), the parties must first jointly identify the cause, discuss measures, and strive to overcome it. When an unforeseeable event occurs, quickly determine the extent of the damage and agree on risk sharing when settling the contract.

III. RESPONSIBILITIES OF THE PARTIES AND RELATED UNITS

1. After being signed by the parties and confirmed by the People's Committee of the commune or township, or notarized by the Notary Office of the district, the contract becomes a document with full legal force. Any party failing to fulfill the commitments made in the contract and causing material damage must compensate the damaged party.

2. Enterprises signing contracts for the consumption of products must be responsible for purchasing all agricultural products at the time and place as committed in the contract. The standards, quality, and quantity of agricultural products must be accurately evaluated; enterprises shall not arbitrarily downgrade the products, force lower purchase prices for agricultural products, increase the selling price of materials, causing harm to producers.

3. Producers who have been contracted by enterprises to consume agricultural products and pre-pay materials and capital must sell the required quantity of agricultural products at the specified time and meet the quality standards of agricultural products as stipulated in the contract; they shall not sell to other enterprises at higher prices without written consent from the enterprise partner and without fulfilling all obligations under the contract.

4. Provincial People's Committees directly supervise the signing of contracts between agricultural product consumption enterprises and producers; promptly detect and prevent unhealthy practices in localities that could lead to breaches of contract by both parties.

5. District People's Committees and Commune People's Committees directly monitor the signing of contracts between agricultural product consumption enterprises and producers; promptly detect and prevent unhealthy practices in localities that could lead to breaches of contract by both parties.

6. The Farmers' Union is requested to coordinate with the authorities to guide, publicize, and mobilize farmers to sign and strictly comply with contracts for the sale of agricultural products with enterprises.

The Ministry of Agriculture and Rural Development shall issue a model contract for the sale of commercial agricultural products for the parties involved in signing the contract (enterprises and producers) to apply. Any issues encountered during implementation should be reported to the Ministry for appropriate solutions./.