Is a deposit contract to transfer land use rights without a certificate of land use rights invalid in Vietnam?
Is a deposit contract to transfer land use rights without a certificate of land use rights invalid in Vietnam? What is return of deposited property upon liquidation sale in Vietnam? If fruit prices increase, does the garden owner have right to cancel the deposit contract in Vietnam?
Is a deposit contract to transfer land use rights without a certificate of land use rights invalid in Vietnam?
Question: Is a deposit contract to transfer land use rights without a certificate of land use rights invalid in Vietnam? I intend to buy a piece of land, but currently the seller's land does not have a certificate of land use rights. Now the seller is asking me to sign a deposit contract. The contract stipulates that the seller will make a certificate of land use rights. When I have the book, I will pay the remaining amount. So let me ask, if the seller has not yet completed the certificate of land use rights (for example, if there is a dispute...), will this deposit contract be invalid when going to court? Looking forward to receiving advice from you. Thank you very much!
Reply:
According to the provisions of Article 328 of the 2015 Civil Code:
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.
The deposit process must be documented.
Current law does not require that deposit contracts be notarized.
Thus, if your deposit contract is guaranteed in the above form, as well as the contents do not violate the law, it is completely legally valid, if there is a dispute in Vietnam.
What is return of deposited property upon liquidation sale in Vietnam?
Question: What is return of deposited property upon liquidation sale in Vietnam? My agency has a liquidation sale of assets, the buyer comes to make a deposit then does not bid or bids lower than the starting price. So can that person get their deposit refunded? Looking forward to receiving advice from you. Thank you very much!
According to Clause 2, Article 328 of the 2015 Civil Code: 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 and perform the civil contract, the deposited property belongs to the depositee. If the depositee refuses to enter into and perform the civil contract, it must be returned to the depositor of deposited assets and an amount of money equivalent to the value of the deposited assets in Vietnam.
In case when liquidating assets in Vietnam, the buyer comes to deposit and then does not bid or bids lower than the starting price clearly stated in the deposit contract and the buyer violates, leading to the contract not being concluded. In civil cases, the party receiving the deposit will not have to return the deposited property and compensate the equivalent amount.
If fruit prices increase, does the garden owner have right to cancel the deposit contract in Vietnam?
Question: Mr. Do Banh (Go Cong, Tien Giang) asked: Recently, I signed with Mr. Dong, the garden owner, a contract to purchase all fruit for the year for 400 million VND. To secure this transaction, I made a deposit of 80 million VND in advance to Mr. Dong. At harvest time, due to the high price of the fruit, Mr. Dong proposed to increase the value of the contract to 600 million VND before he would sell it. If I did not agree, he would return the 80 million deposit and unilaterally terminate the signed contract. So, what should I do in this case?
In case the contract is performed, the deposit of 80 million VND will be deducted to fulfill Mr. Banh's payment obligation; If Mr. Banh refuses to perform Mr. Dong's fruit purchasing contract, the 80 million VND deposit belongs to Mr. Dong; If Mr. Dong refuses to perform the fruit selling contract, Mr. Dong must pay Mr. Banh double the deposit amount of 160 million VND, unless otherwise agreed.
You can refer to the content of these regulations in the 2015 Civil Code. Regarding morality, people often say: When you say something, you must keep it/Don't be like a butterfly that lands and then flies away/If you say nine then do ten/If you say ten then do nine, some laugh and others criticize.
In principle, if Mr. Dong "breaks the deal", he will still have a profit of 40 million VND from the increase in fruit price. However, in business, there are times when the price goes up and down, so keep your reputation together for long-term business. Litigation is only the last resort when there is no other solution.
Therefore, combine both legal and ethical provisions in resolving this dispute in the direction of increasing the contract value to an acceptable level, to ensure harmony of interests of both parties in Vietnam.
