"How many years is a power of attorney valid for at most?" is a very common question in Vietnamese transactions. Many assume the law sets a fixed maximum — it does not. The rule is in Article 563 of the Civil Code 2015 (document 91/2015/QH13, still in force at the time of writing, October 2026).
There is no fixed "maximum term"
Article 563 of the Civil Code 2015 provides that the term of authorization is agreed by the parties or prescribed by law. In other words, the parties are free to set a long or short term as they need — 3 months, 2 years or 10 years are all valid if clearly agreed in the contract. The law sets no general "ceiling" applicable to all authorization contracts.
Default of one year when there is no agreement
Where the parties do not agree on a term and the law has no separate provision, the term of authorization defaults to one year from the date the authorization is established. This is Article 563's "safety net" — it applies when the authorization contract leaves the term clause blank.
Example: A authorizes B to sell a shipment of goods, but the contract states no term. Absent any other applicable legal provision, the authorization is valid for one year from the signing date by default.
A common pitfall: citing the wrong article number
A frequent practical pitfall: many secondary sources (summary articles, floating contract templates) cite the wrong article number for the rule on authorization terms. The correct number, verified against the original text, is Article 563 of the Civil Code 2015. When researching or citing, always check the statute itself rather than relying on secondary sources.
Practical recommendations
- Always state the term expressly in the authorization contract — do not rely on the one-year default, which may not match the parties' real intent.
- State clearly when the term starts running (signing date, notarization date…) to avoid disputes.
- Provide a renewal or early-termination mechanism in the contract itself.
- For high-value transactions or matters requiring notarization, have a lawyer review the full set of terms, not just the term clause.
Frequently asked questions
Is an authorization contract without a stated term invalid? No. The contract remains valid; its term is determined under Article 563 of the Civil Code 2015 — one year by default where there is no agreement and no other legal provision.
Can an authorization be "indefinite"? The parties may agree a very long term, but note that some specialized types of authorization may be subject to sector-specific rules — check the regulations applicable to your field.
What happens when the term expires? The authorization ends upon expiry; if the parties wish to continue, they need a new authorization document or a written renewal agreement.
Legal sources
- Civil Code 2015 (91/2015/QH13), Article 563 — in force at the time of writing (October 2026).
Need to draft or review a power of attorney? The FLAT Law Firm team advises on, drafts and reviews authorization contracts and other civil–commercial transactions. Contact us at contact us.
The information in this article is general reference based on the law in force at the time of writing, not legal advice for any specific matter.
Transparency note: This article was drafted by FLAT Law Firm's AI content production system and is undergoing internal review (AI Legal Council QA and owner approval before publication). It has not been reviewed by a human lawyer.
