If I don't sign the leasing contract, can I get my deposit returned in Vietnam? Is a contract required for transaction value over 20 million in Vietnam?

If I don't sign the leasing contract, can I get my deposit returned in Vietnam?

I want to do business and find a house to rent, so I deposited 1 month's rent of 20 million VND on November 14, 2019 and the lessor made a deposit receipt and set a date to sign the contract. Because I don't have any business needs anymore and haven't been able to stay a day. On November 14, 2019, I said I wanted my deposit back, but the lessor did not agree to return it. So can I get my deposit back without signing the leasing contract? I hope the lawyers can advise me.

Reply:

Article 328 of the 2015 Civil Code stipulates:

1. Deposit is an act whereby one party (hereinafter referred to as the depositor) transfers to another party (hereinafter referred to as the depositary) a sum of money or precious metals, gemstones or other valuable things (hereinafter referred to as the deposited property) for a period of time as security for the entering into or performance of a contract.

2. Upon a contract being entered into or performed, any deposited property shall be returned to the depositor, or deducted from the amount of an obligation to pay money. If the depositor refuses to enter into or perform the contract, the deposited property shall belong to the depositary. If the depositary refuses to enter into or perform the contract, it must return the deposited property and pay an amount equivalent to the value of the deposited property to the depositor, unless otherwise agreed.

Thus, if the depositor refuses to enter into or perform the contract, the deposit assets belong to the depositee. Therefore, if there is no other agreement, if you do not sign the contract, you will naturally lose the deposit in Vietnam.

If I don't sign the leasing contract, can I get my deposit returned in Vietnam? Is a contract required for transaction value over 20 million in Vietnam? (Image from the Internet)

Is a contract required for transaction value over 20 million in Vietnam?

Please guide me on the regulations for contracts for purchasing and selling goods and providing services. For example, in the past, a minimum of 20 million required a service purchase contract. What is this level now?

Reply:

According to current law, there are no regulations on value of the contract that must be worth before it is made.

An economic contract is an agreement between parties to establish the rights and obligations of the parties. The contract is created by the agreement and voluntariness of the parties.

Currently, in accordance with non-cash payment regulations, small businesses often require contracts worth 20 million or more to be signed in writing.

According to regulations, based on Clause 1, Article 119 of the 2015 Civil Code, regulations on forms of civil transactions are as follows:

1. A civil transaction shall be expressed verbally, in writing, or through specific acts.

Civil transactions by way of electronic means in form of data messages prescribed in law on electronic transactions shall be deemed to be written civil transactions.

However, to ensure the legitimate rights and obligations of the parties, businesses should sign a written economic contract, which serves as a basis for the business to handle and protect its legitimate rights when one party violates the contract.

Above is the support content.

Is it a violation if the leasing contract has a penalty clause of 20% of contract value in Vietnam?

I have rented a house but the payment deadline has not yet reached. I don't want to rent anymore. In the contract, the penalty for breach of obligation is 20% of the breached contract obligation. What will this be handled? Because the regulation is no more than 8%.

Reply:

According to regulations, a house lease contract is essentially a civil contract that will be adjusted according to the provisions of civil law.

According to Article 418 of the 2015 Civil Code, penalties for contract violations are as follows:

1. Agreements on fines for violations are reached by the parties to a contract which requires the violating party to pay a fine to the aggrieved party.

2. The fine levels shall be agreed among the parties, unless otherwise prescribed by relevant laws.

3. The parties may reach an agreement that the violating party has to pay only a fine for violations and is not liable to any compensation for damage, or has to pay both a fine for violations and a compensation for damage.

In case the parties have an agreement on fines against violation which does not specify that the violating party has to pay both a find for violations and a compensation for damage, then the violating party has to pay only the fine for violations.

Thus, the two sides' agreement on a 20% fine is in accordance with the provisions of the law in Vietnam.

The regulation on a fine of no more than 8% only applies to commercial contracts in Vietnam.

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Best regards!