29/07/2022 11:30

Buying and selling directly, lending by handwritten paper - is debt collection difficult in Vietnam?

Buying and selling directly, lending by handwritten paper - is debt collection difficult in Vietnam?

Currently, lending large amounts of money to relatives and acquaintances without a contract but only verbally or through handwritten loans is a common problem in a gratitude society like ours. However, when borrowing is easy, the due date is ambiguous, crooked and not paid. Therefore, only verbal and handwritten agreements in property loan transactions are sufficient grounds to ask the Court to intervene.

Specifically, in Judgment  42/2018/DS-ST dated November 2, 2018 on the property loan contract of the People's Court of My Xuyen district, Soc Trang province for the first-instance trial:

"In 2012 to 2015, Mrs. Nguyen Thi D bought shrimp feed from Mr. and Mrs. D and owed a total amount of 212,380,000 VND, then Mrs. D paid 16,000,000 VND and still owed the amount of 196,380,000 VND. In addition, on May 10, 2015 of the lunar calendar, Ms. D also asked him to borrow 20,000,000 VND of capital, negotiable interest of 5%/month. Ms. D paid interest for 30 months, then stopped and did not return the capital to him. The borrowing does not form a contract, only a verbal agreement between each other and Ms. D signed a promissory note for him. At the trial, Mr. Nguyen Van L asked Ms. Nguyen Thi D and Mr. Vo Van S to pay for the debt purchase of shrimp feed 196,380,000 VND and 20,000,000 VND of loan capital and asked Ms. D to pay the debt over 1 installment in debt".

According to the provisions of Article 430 and Article 463 of the Civil Code 2015 of Vietnam as follows:

Article 430. Sale contract of property

Sale contract means an agreement between parties whereby a seller is obligated to transfer the ownership rights of property to the purchaser and the purchaser is obligated to make a payment to the seller.

Sale contracts of houses or sale contracts of houses for other purposes shall comply with this Code, the Law on Housing and relevant laws.

Article 463. Contracts for loan of property

Contract for the loan of property means an agreement between parties whereby a lender delivers property to a borrower. When the loan falls due, the borrower must repay the lender property of the same type in accordance with the correct quantity and quality, and must pay interest if so agreed or so provided by law.

At the same time, other provisions of the current civil law do not stipulate that a property loan contract must be made in writing and notarized or authenticated. Therefore, the fact that Mr. L lends money and sells goods to Ms. D but only enters into it verbally and in writing, this type of contract is still legally valid, the two parties still have the rights and obligations according to the provisions of law. by law and by agreement.

Therefore, the People's Court of My Xuyen district, Soc Trang province ruled:

Forcing Mrs. Nguyen Thi D and Mr. Vo Van S to be jointly responsible to pay Mr. Nguyen Van L a total amount of 216,380,000 VND (Two hundred and sixteen three hundred and eighty thousand dong), in which: Money to buy food debt shrimp farming is 196,380,000 VND and loan amount is 20,000,000 VND.

Although, verbal and handwritten property loans still have grounds to sue to reclaim property. But the lender should make a clear and legal loan contract in case of a dispute with sufficient proof, so that the property recovery is done faster and easier.

Thanh Ngan

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