Summary of judgments on disputes over contracts to contribute capital for land purchase in Vietnam

Below are some judgments on disputes over contracts to contribute capital for land purchase in Vietnam.

1. Judgment 12/2020/DS-ST dated 21/08/2020 on dispute over capital contribution contract

- Level of trial: First instance

- Judicial body: People's Court of Ben Cau district, Tay Ninh province

- Summary: Due to acquaintance, Mr. Pham Hong M, Mr. and Mrs. Vo Thanh L, and Mrs. Tran Thi Kim S contributed capital to buy the land of Mr. and Mrs. S and Mrs. M at the transfer price of VND 13,500,000,000; 10% deposit in advance. Mr. L and Mrs. S told Mr. M that they could only contribute 30% of the deposit and transfer amount; the remaining 70%, Mr. M contributes. The profit is also divided according to the capital contribution ratio of 30/70, Mr. M agrees. But Mr. M thinks that Mr. M has not yet collected the money, so he asked Mr. L and Mrs. S to lend and contribute 70% of Mr. M. Later, when the land use purpose is changed and transferred, it will be deducted and returned to the part that Mr. L and Mrs. S are obliged to contribute. Mr. L deposited 1,350,000,000 VND in advance for Mr. S and Mrs. M and signed a deposit contract at the notary office. However, near the implementation date of the transfer contract, Mr. M said that he had not collected the money and then hid it. Mr. L and his wife went to see Mr. and Mrs. S to ask for an agreement, but failed.

- Decision: Accepting the petition of Mr. L and Ms. S, forcing Mr. M to be obliged to pay Mr. L and Ms. S the amount of 1,018,767,000

2. Judgment 184/2021/DS-PT dated October 13, 2021 on dispute over capital contribution contract

- Judgment level: Appellate

- Judicial body: People's Court of Dak Lak province

- Summary: Ms. T. and Mr. H signed a capital contribution contract with Ms. Hoang Y to receive the transfer of land use rights. According to the contract, Ms. T contributed capital in cash of VND 688,000,000; Mr. H contributed capital in cash of 403,000,000 VND; and Ms. Y contributed capital with land use rights for the above 9.8ha of land and is responsible for managing the capital, receiving the transfer of land use rights and applying for the investment license to build the farm. Before signing the capital contribution contract, Ms. T and Mr. H had fully contributed the above capital amount to Ms. Y. However, Ms. Y did not perform the land transfer and farm construction investment as committed in the contract, but used the money contributed by him and her for personal purposes. Mr. H and Mrs. T asked Ms. Y to return the money that he and she contributed to Ms. Y, but Ms. Y did not pay. Therefore, Ms. T filed a lawsuit to request the court to settle: Forcing Ms. Y to return to Ms. T 688,000.00 VND of the contributed capital, Mr. H filed a lawsuit to request the court to settle by forcing Ms. Y to pay him back 403,000,000 VND of the contributed capital.

- Decision: Forcing Mrs. Hoang Y to return to Ms. Hoang Thi T the capital contribution amount of VND 305,000,000 and to Mr. Nguyen Van H the amount of capital contribution of VND 53,000,000.

3. Judgment 60/2019/DSPT dated October 15, 2019 on dispute over capital contribution contract

- Judgment level: Appellate

- Judicial body: People's Court of Thai Nguyen province

- Summary: Because of his trust in Mrs. H1, Mr. T1 has made a deposit for Ms. H1 of VND 10,000,000 so that Ms. H1 can make a red book for him to co-own or name the land use rights and then borrow interest to pay later. After he and his wife gave Ms. H1 a total amount of VND 110,000,000 and asked Ms. H1 to carry out procedures for him to co-own or separate the red book under his own name, Mrs. H1 said that he had to give another 40,000,000 VND to separate the red book. At the same time, Mrs. H1 transferred the entire land to her son's name, T2, and said that this land is in the planning and cannot be converted to residential land. He saw that Ms. H1 said before and after that she was not honest and at that time had no place to live, so he and his wife went down to Ms. H1's house many times to claim the money they had given. Done, Mrs. H1 again refused to pay. Now he asks the Court to force Ms. H1 to return him the amount of VND 110,000,000. If the payment is late, Ms. H1 must pay the bank's interest at the same time as the court settles.

- Decision: Dismissing Mr. T1's petition to request Mrs. H1 to return 110,000,000 VND for the purchase of the same land.

4. Judgment 116/2021/DSPT dated June 17, 2021 on dispute over capital contribution contract

- Level of trial: Appellate

- Judicial body: Can Tho City People's Court

- Summary: Ms. Le Thi My C invited Mr. P and Mr. Le Minh H to join hands to buy a house and land at 66/19 for 1,000,000,000 VND. He and Mr. H. agreed to 500,000,000 VND, at a rate of 50%, but the actual price, I don't know. At this time, Mr. H is serving his sentence, so Mr. P went to visit him and Mr. H agreed. After that, he assigned all the signing of contracts, registration of transfer of names, and names on land use right certificates to Mrs. C. and Mr. H. On April 3, 2008, Mr. P and Mrs. C, and Mr. H, signed a contract to contribute capital to buy a house under the witness of Mr. Le H. N. (brother two in the family). In 2012, Mr. P returned to live at house number 66/19 and in 2014 he entered the household registration book. Around 2018, he was informed that the Civil Judgment Execution Department of Can Tho City was selling house No. 66/19 to pay off the personal debt of Mrs. C., Mr. H. He and Mr. Le Minh H. sued to claim they forced Mr. Nguyen Dinh H. and Mrs. Le Thi My C. to pay 1/2 of the house and land value.

- Decision: Accept the plaintiff's petition.

5. Judgment on dispute over capital contribution contract No. 112/2021/DS-PT

- Level of trial: Appellate

- Judicial body: People's Court of An Giang province

- Summary: Due to acquaintance and trust, Mr. Nguyen Thanh N and Mr. Nguyen Van N2, Mrs. Le Thi S, jointly contributed capital to receive the transfer of land plots. The two parties have signed a capital contribution contract agreeing that Mr. N contributes an amount of VND 2,661,750,000, of which VND 2,500,000,000 has been made in writing, and VND 161,750,000 has not been made. According to the content of the capital contribution contract, Mr. N2, Ms. S is the representative to receive the transfer in the name of the land use rights of the above-mentioned land parcels. Mr. N2 and Mrs. S must obtain Mr. N's permission to mortgage or transfer these land plots.By January 2021, Mr. N2 will notify Mr. N by phone and inform Mr. N that he has a partner. I can buy land for 550,000 VND/m2. Mr. N believed it was true, so he agreed and received the amount of VND 100,000,000 from Mr. N2. On February 5, Mr. N2 and Ms. S received a deposit to transfer the above land plots at the price of VND 650,000/m2. Thus, the distribution of money to Mr. N is not in accordance with the agreement. Mr. N2 also arbitrarily transferred it to another person without Mr. N's opinion, so Mr. N filed a lawsuit requesting to divide the property under the capital contribution contract with a value of VND 650,000/m2, otherwise, the land must be divided to him.

- Decision: Forcing Mr. Nguyen Van N2 and Ms. Le Thi S to be obliged to pay Mr. Nguyen Thanh N the remaining withdrawal amount of 372,634,500 VND.

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