Vietnam: In case a consumer unilaterally terminates a distance contract, shall a trader refund the paid money to the consumer?
What is a distance contract in Vietnam?
Pursuant to Clause 1, Article 3 of Decree 99/2011/ND-CP of Vietnam, the definition of a distance contract in Vietnam is as follows:
Interpretation of terms
In this Decree, the terms below are construed as follows:
1. Distance contract means a contract concluded between a consumer and a goods or service trader via an electronic device or by telephone.
Thus, distance contract means a contract concluded between a consumer and a goods or service trader via an electronic device or by telephone.
Vietnam: In case a consumer unilaterally terminates a distance contract, shall a trader refund the paid money to the consumer?
When concluding a distance contract, what information must a trader provide for consumers?
According to the provisions of Clause 1, Article 17 of Decree 99/2011/ND-CP of Vietnam on this issue as follows:
Distance contracts
1. When concluding a distance contract, a trader shall provide a consumer with the following information:
a/ Name of the trader, telephone number, address, head office and address of the establishment responsible for the contract conclusion offer (if any);
b/ Quality of the goods or service;
c/ Goods delivery cost (if any);
d/ Modes of payment and goods delivery or service provision;
e/ The validity time of the offer and offered price;
f/ Costs for use of communication devices for contract conclusion, if these costs are not included in the goods or service price;
g/ Details on specifications, use and use method of the goods or service provided under the contract.
Thus, when concluding a distance contract, a trader shall provide a consumer with the following information:
- Name of the trader, telephone number, address, head office and address of the establishment responsible for the contract conclusion offer (if any);
- Quality of the goods or service;
- Goods delivery cost (if any);
- Modes of payment and goods delivery or service provision;
- The validity time of the offer and offered price;
- Costs for use of communication devices for contract conclusion, if these costs are not included in the goods or service price;
- Details on specifications, use and use method of the goods or service provided under the contract.
In case a consumer unilaterally terminates a distance contract, shall a trader refund the paid money to the consumer?
According to the provisions of Clauses 3 and 4, Article 17 of Decree 99/2011/ND-CP of Vietnam as follows:
Distance contracts
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2. When a contract conclusion offer is made by telephone, a trader should clearly state its name and address and purpose of the call right from the beginning.
3. Unless otherwise agreed by involved parties, when a trader fails to properly or fully provide the information stated in Clause 1 of this Article, within ten (10) days after concluding the contract, a consumer may unilaterally terminate the contract and notify such to the trader. The consumer is not obliged to pay any costs related to that termination and shall only pay for the goods or service he/she has used.
4. In case a consumer unilaterally terminates a contract under Clause 3 of this Article, a trader shall refund the paid money to the consumer within thirty (30) days after the consumer announces to unilaterally terminate the contract. Past this time limit, the trader shall pay interests for the delayed payment corresponding to the lime of delayed payment at the prime interest rate announced by the State Bank at the time of payment. The refund shall be made by the mode of payment used by the consumer, unless the consumer agrees to the refund by another mode.
In case the contract termination causes damage to a consumer, a trader shall pay damages under the civil law.
Thus, according to the above provisions, in case a consumer unilaterally terminates a contract when a trader fails to properly or fully provide the information, the trader shall refund the paid money to the consumer within thirty (30) days after the consumer announces to unilaterally terminate the contract.
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