21/07/2022 11:05

Having transferred the debt payment to a third party, is there any obligation in Vietnam?

Having transferred the debt payment to a third party, is there any obligation in Vietnam?

Assignment of an obligation is an agreement between an obligor and a third person (the obligee) on the basis of the obligee's consent, whereby the obligor will become a new obligee, and perform obligations before the obligee.

However, the current law of Vietnam does not have specific provisions on whether or not the original obligor when transferring an obligation is or is no longer responsible to the obligee? The judgment below will help you answer this question.

Specifically, at Judgment 15/2018/DS-ST dated April 20, 2018 of the People's Court of Hon Quan district, Binh Phuoc province, the first-instance public hearing of the case on the dispute over the transfer of obligations:

“Ms. Sy Hong N, Mr. Nguyen Trung K previously borrowed from Mrs. Ngo Thi T in the amount of VND 85,000,000. Ms. N and Mr. K have paid Ms. T an amount of VND 62,000,000 and still owed VND 23,000,000. Ms. Tran Thi Thanh T is the mother of Ms. N, if she stood to accept the debt on behalf of Ms. N, Ms. T would agree. After receiving the debt from Ms. Ngo Thi T, Ms. Tran Thi Thanh T paid Ms. T an amount of VND 3,500,000 and still owed VND 19,500,000.

Now, Ms. Ngo Thi T sues Ms. Tran Thi Thanh T to refund Ms. T the amount of VND 19,500,000. Ms. Tran Thi Thanh T disagrees with the reason for the above amount of money. Ms. T stands to accept the debt for Ms. N and Mr. K and writes a debt receipt to Ms. T, she asks Ms. N and Mr. K to pay this amount.

N's side, she voluntarily stood up to pay the remaining amount of 19,500,000 VND. Due to difficulties, I would like to pay 500,000 VND/month until the debt is paid off.”

The People's Court of Hon Quan district, Binh Phuoc province made the following observations: Regarding Ms. Ngo Thi T's petition to request Ms. Tran Thi Thanh T to pay Ms. Thi the amount of VND 19,500,000. Ms. Tran Thi Thanh T voluntarily stood up to perform the obligations on behalf of Ms. Sy Hong N and Mr. Nguyen Trung K with the consent of Ms. Ngo Thi T. The provisions of Article 370 of the 2015 Civil Code, Ms. Tran, were applied. Thi Thanh T has an obligation to repay Ms. Ngo Thi T.

Article 370 of the 2015 Civil Code of Vietnam provides as follows:

“ Article 370. Transfer of obligations

1. The obligor may transfer the obligation to the obligee if so agreed by the obligee unless the obligation is attached to the obligee's identity or is not required by law to be transferred. duty.

2. When an obligation is transferred, the obligor becomes the obligor.”

It can be seen that, although Ms. N has received back the obligation to pay Ms. Ngo Thi T the amount of VND 19,500,000, however, Ms. T does not agree, so Ms. Tran Thi Thanh T still has to continue to perform the payment obligation that Ms. previously delivered. Ms. N and Mr. K are no longer obliged to repay the debt to Ms. T. The transfer of the obligation will completely terminate the obligation of the assigning party to the obligee. Ms. N and Mr. K are also not responsible for the behavior of Ms. Tran Thi Thanh T's failure to perform or incompletely perform her obligations in front of the rightful party, Ms. Ngo Thi T.

In conclusion, the original obligor will not be liable for the obligee's performance of the obligation (unless otherwise agreed by the parties: the obligee agrees to the original obligor to pay the debt). The original obligee and the obligee will terminate the entire obligation relationship.

Thu Linh

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