15/07/2022 10:17

05 judgments on service contract disputes in Vietnam

 05 judgments on service contract disputes in Vietnam

Service contract is an agreement between parties when entering into a contract, whereby one party is called a service provider, and the service provider is obliged to perform the service for another party and receive payment from the party for whom the service provider has performed the service, which is the service user or also known as the customer, the service user is obliged to pay the service provider as agreed.

In a market economy, the signing of service supply contracts is regular and since then many disputes arise. Here is a summary of the 5 judgments with the above content, please refer to:

1. Judgment 16/2021/DS-ST dated May 26, 2021 on disputes over payment service provision activities

- Level of trial: First instance

- Judicial body: People's Court of Son Tra District, Da Nang city

- Quote: “Mrs. D signed with Bank S a contract on using a credit card (including the application for a credit card cum contract and the terms and conditions for the issuance and use of a credit card) of Bank S). Based on Ms. D's income, the Bank has agreed to issue a credit card with a usage limit of VND 15,000,000. Borrowing for personal use, the interest rate is 2.65/month (interest rate within the term). After being granted the card, Ms. D made transactions with a total amount of VND 13,500,000. In the process of using the card, from the date of card activation until now, Ms. D has not paid to the Bank."

2. Judgment 12/2019/KDTM-ST dated 30/11/2019 on the dispute about payment obligation for the construction service supply contract

- Level of trial: First instance

- Judicial body: People's Court of Quang Ngai city, Quang Ngai province

- Quoting the content: "On December 4, 2014, Company 72 and PL Company signed an economic contract No. 28/2014/HDKT with the content: Party A (PL Company) agrees to hand over, the B (Company 72) agrees to provide some auxiliary materials, lease machines, equipment, formwork scaffolding and a number of workers.... for the construction of Kenh Bridge Project, part of the open project Highway 1. During the performance of the contract, Company 72 provided a full range of services at the request of PL Company, PL Company paid part of the service costs and owed the Company 72 numbers. service fee is 1,477,273,000 VND. Although the two parties reconciled the debt on April 30, 2016, Company 72 has repeatedly requested PL Company to pay, but PL Company has not yet paid the debt.

3. Judgment 136/2020/KDTM-ST dated September 22, 2020 on a dispute over a contract for the provision of transportation services

- Level of trial: First instance

- Judicial body: People's Court of District 1, Ho Chi Minh City

- Quoting the content: "From 2014-2016, the plaintiff P.P.S Trading and Service Co., Ltd. signed with the defendant C.N Construction Joint Stock Company the following contracts: Construction contract HN No. 01- 03/HDVC in 2014; Contract for transportation of American Beer Works (ABI) No. 01-03/HDVC in 2014; Contract for transportation of C.M works No. 01-03/HDVC in 2014 in Binh Duong province. During the performance of the contract, the plaintiff has performed and completed the obligation to transport all kinds of scaffolding to the defendant. On December 31, 2018, the two parties signed a record of debt reconciliation with the outstanding amount of VND 188,982,000, but so far the defendant has not paid the plaintiff. Now, the plaintiff sues to ask the defendant to pay the outstanding amount of VND 188,982,000, without asking for interest.”

4. Judgment 02/2020/KDTM-PT dated September 30, 2020 on a dispute over a contract to provide drilling and blasting services

- Judgment level: Appellate

- Judicial body: People's Court of Lao Cai province

- Quoting the content: "On November 22, 2016 Company S sent an application for payment, enclosed with written confirmation of completed volume, and a Value-added invoice, in which Company S requested Company X to pay the stone volume of 16,154m3 and confirm an advance of VND 150,000,000 (One hundred and fifty million VND) during the construction period. While waiting for Company S to clarify the volume of C4 stone performed in two minutes confirming the completed volume on the same day, October 17, 2016 The Company paid S Company 100,000,000 VND (One hundred million VND) on August 9, 2017. For the blasting passport, Company S did not follow the correct procedure in the use of industrial explosives, at a location where consecutive blasting was only a few minutes apart from A volume of several hundred surgical drugs is not feasible.”

5. Judgment 04/2020/KDTM-ST dated 05/05/2020 on the dispute over a service supply contract

- Level of trial: First instance

- Judicial body: People's Court of Thuan An city, Binh Duong province

- Quoting the content: "AC Co., Ltd and VJP Co., Ltd. have signed a contract and an appendix to the contract to provide security services. Accordingly, AC Co., Ltd. provides protection services to the defendant at two locations. However, after receiving the contract appendices, the defendant neither signed nor sent it back to the plaintiff. The service fee the defendant has to pay monthly is VND 39,504,000/month excluding VAT. By September 2019, the involved parties had reached an agreement on reducing the number of security guards and security service fees at the defendant's headquarters to VND 15,801,600/month, excluding VAT. As of December 31, 2019, the defendant owes the plaintiff a service fee of VND 769,931,040 including VAT.”

Nhu Y

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