Under Vietnamese Civil Code, specifically regarding the Law on Contracts, an agreement that violates "socialist legality" or aims to circumvent state regulations (like foreign exchange controls or real estate zoning laws) is void ab initio (void from the beginning).
Let’s pull back the curtain. First, we have to address the translation. In standard business English, "Initial Agreement" sounds benign. It implies a draft, a starting point for negotiation that isn't yet legally robust.
Unlike standard contracts that start on the signing date, the Khe Uoc Ban Dau often references an earlier verbal agreement or a handshake deal. It attempts to legislate the past. This is a legal nightmare because it tries to retroactively apply terms to actions already taken.