Disputes over the performance of the contract of real estate reward in Vietnam

When a person promised a real estate reward, then refuses to fulfill his promise, could the person who is promised the reward make a claim?

In Articles 570 and 572 of the 2015 Civil Code of Vietnam, there are provisions on the promise of rewards and payment of rewards as follows:

“Article 570. Promises of rewards

1. A person having made a public promise of a reward must pay that reward to a person having performed the act requested by the promissor.

2. An act for which a reward is promised must be specific and capable of being performed and must not be prohibited by law nor contravene social morals.

"Article 572. Payment of rewards

1. Where a person performs an act for which a reward is promised, that person shall be given the reward upon completion of the act.

2. Where several persons perform an act for which a reward is promised, concurrently but independently, the person having first completed the act shall be given the reward.

3. Where more than one person complete, at the same time, an act for which a reward is promised, the reward shall be distributed in equal shares amongst such persons.

4. Where more than one person co-operate with each other to perform, at the request of the promissor, an act for which a reward is promised, each person shall receive a share of the reward in proportion to its contribution.

In conclusion, promissor must pay the reward to the person who has performed the work he has requested. In addition, in cases where the person promising the reward has died, his/her heirs are responsible for performing the obligation to pay the reward within the scope of the estate left by the deceased (as provided for in Article 615 of the Civil Code 2015).

However, the promised person may also withdraw the promise of reward when: The work has not yet been due and the withdrawal of the promise is made in the manner and by the means by which the promise of reward has been made announced. (Article 571 Civil Code 2015).

What does the court do to solve this case?

In the context of a case about a contract dispute with the promise of reward No. 159/2022/DS-PT adjudicated by the High People's Court of Ho Chi Minh City:

"Plaintiff Ms. Nguyen Thi Kim O presented: In 2008, Mrs. Tu Thi Minh T and her husband, the daughter of Mrs. Nguyen Thi N, asked her for help because the investor of the Mieu Noi area and the People's Committee of Binh Thanh District continued to enforce the house and land of Mrs. N's family. Her family N made a commitment letter on May 3, 2008 signed by Mrs. N and signed by the plaintiff. The content of the commitment is that Mrs. N's family asks her to perform related works so that Ms. N's family can receive their house and land 156/30 Nguyen Lam with the promise in the commitment paper is: "After the case is resolved and I receive the decision of the competent authority to determine the ownership of the whole house and land mentioned above, I voluntarily let Ms. Thi Kim O part of the land, corresponding to 10m x 12.4m, the location is towards Phan Dang Luu Street, adjacent to the house U24 Phan Xich Long, Ward 3, Binh Thanh District, Ho Chi Minh City” and “I commit to fully carry out the procedures for transferring the agreed ownership of the land (124m2) to Ms. Nguyen Thi Kim O and promise not to dispute later. If my children have a dispute, I am responsible for resolving it to fully implement the terms committed in this paper".

She had to contact many agencies from central to local, and make complaints to the Government Inspector, Ministry of Construction, and People's Committees at all levels of Vietnam. On June 14, 2016, the City People's Committee issued Official Dispatch 1326/UBND-VP, which contained the following paragraph: The case of Ms. Nguyen Thi N and the households that need to issue a certificate of land use right and ownership of houses and other properties attached to the land, please contact and submit documents at the branch of the Land Registry Office in Binh Thanh District for consideration and settlement according to regulations. After that, She spent money to redraw the house and land drawings and gave four drawings to Ms. Tu Thi Minh T to give Ms. Nguyen Thi N to sign and make an appointment to the People's Committee of Binh Thanh District to submit the application for a certificate, however, the plaintiff could not contact Ms. Tu Thi Minh T.

Realizing that she had done the job as requested, but Mrs. N's family did not fulfill her promise as committed, so Ms. O filed a lawsuit asking Ms. N to fulfill her promise as committed on May 3, 2008. , assigned the plaintiff 124m2 house and frontage of the house at 156/30 Nguyen Lam, Ward 3, Binh Thanh District and compensated her for material and spiritual damage."

Judgment of the Court:  Ms. N has publicly promised the reward and the promised job is specific, practicable, not prohibited by law and not contrary to social ethics. The plaintiff has fulfilled the defendant's promise of reward, so he is entitled to the benefits according to the defendant's promise. 

Adjudication of the court: Accepting the plaintiff's request. Forcing the heirs of the defendant's procedural rights and obligations, including Ms. Tu Thi Minh T, Mr. Tu Van N, Mr. Tu Van C, Mr. Tu Xuan T, Mr. Tu Xuan V, Ms. Tu Thi Bach Y, Mr. Tu Ngoc L, and Ms. Tu Thi Minh C must pay Ms. Nguyen Thi Kim O the right to use land in an area of ​​10 meters x 12.4 meters and a house on this land.

In short, if the promise of a reward is accompanied by the request of another person to perform the work when that person has completed the work, the person who has promised the reward must perform his/her reward payment obligation, and must not delay in paying the bonus and even If the promisor dies, his or her heirs still have to pay the reward on the amount of the deceased's estate.

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