Can the Deposit be Recovered When the Contract is Not Executed?

In Article 328 of the 2015 Civil Code, the regulation on deposits is as follows:

- A deposit is an arrangement where one party (hereinafter referred to as the depositor) hands over to the other party (hereinafter referred to as the deposit receiver) a sum of money or precious metals, gemstones, or other valuable items (hereinafter collectively referred to as the deposited asset) for a certain period to secure the contract conclusion or performance.

- In the event the contract is concluded and performed, the deposited asset shall be returned to the depositor or be deducted to fulfill the payment obligation; if the depositor refuses to conclude or perform the contract, the deposited asset shall belong to the deposit receiver; if the deposit receiver refuses to conclude or perform the contract, they must return the deposited asset to the depositor and an additional amount equivalent to the value of the deposited asset, except where otherwise agreed.

Thus, if you are a depositor and you refuse to conclude the land use rights transfer contract, the 40 million VND deposit will belong to the deposit receiver, and you will not be entitled to get this amount back.

However, if both parties have another agreement, it will be implemented according to that agreement.

Sincerely!