My aunt's family, Ms. N.T.T., urgently needs money and wants to sell her house in Vietnam. Mr. B has expressed interest in purchasing the house but has offered a low price, which my aunt does not accept. Subsequently, Mr. B spread unreasonable rumors and made threats and coercions, forcing my aunt to sell the house. In this case, can the civil transaction between my aunt and Mr. B be considered null and void due to threats?
Article table of contents
Will civil transactions conducted due to deception, threats, or coercion in Vietnam be invalidated? (Illustrative image)
Regarding this matter, the editorial team of Lawnet would like to provide the following explanation:
1. Will civil transactions conducted due to deception, threats, or coercion in Vietnam be invalidated?
Civil transaction is a contract or a unilateral legal act which gives rise to, changes or terminates civil rights and/or obligations. Based on Article 117 of the Civil Code 2015, a civil transaction shall be effective when it satisfies all of the following conditions:
- Participants in the transaction have legal personality and/or legal capacity in conformity with such transaction;
- Participants in the transaction act entirely voluntarily;
- The purpose and contents of the transaction are not contrary to the law and/or social ethics.
Therefore, a civil transaction will be invalidated if it does not meet the above conditions. Moreover, the current regulations also specify seven cases of invalidity of civil transactions in Vietnam, including:
- Invalidity of civil transactions due to breach of legal prohibitions or contravention of social ethics
- Invalidity of civil transactions due to falsification
- Invalidity of civil transactions established and performed by minors or legally incapacitated persons or persons with limited cognition and behavior control or persons with limited legal capacity
- Invalidity of civil transactions due to misunderstanding
- Invalidity of civil transactions due to deception, threat or compulsion
- Invalidity of civil transactions established by person lacking in cognition and behavior control
- Invalidity of civil transactions due to non-compliance with form
Thus, under the above provision, the civil transaction in Mrs. T's case can be invalidated due to threats and coercion. Specifically, Mrs. T was coerced and threatened to sell the house at a low price even though she did not want to sell it, but to avoid potential damage, she had to sell the house. Mrs. T has the right to request the Court to resolve the issue within two years from the date the threatening and coercive actions ceased.
2. Legal consequences of civil transactions conducted due to deception, threats, or coercion in Vietnam
According to the provisions in Article 131 of the Civil Code 2015, the legal consequences of civil transactions rendered invalidated due to deception, threats, or coercion are as follows:
1. An invalid civil transaction shall not give rise to, change or terminate any civil rights and obligations of the parties as from the time the transaction is entered into.
2. When a civil transaction is invalid, the parties shall restore everything to its original state and shall return to each other what they have received.
If the restitution is not able to make in kind, it may paid in money.
3. A bona fide person in receiving yield and/or income is not required to return such yield and/or income.
4. The party at fault which caused damage must compensate therefore.
5. The settlement of consequences of invalid civil transactions regarding personal rights shall be prescribed in this Code and relevant laws.
Therefore, under the above provisions, in the case Mrs. T suffers property damage due to baseless rumors spread by Mr. B that led to no one wanting to buy the house and the house's value decreasing, Mrs. T has the right to request Mr. B to compensate for the damage after the Court declares the civil transaction invalidated.
Ty Na
