Where do yield and income come from? Ownership of yields and incomes in Vietnam

Where do yield and income come from? Ownership of yields and incomes in Vietnam (Illustration)

1. The concept of yield and income

According to the provisions of Article 109 of Vietnam's Civil Code 2015, the yield and income are defined as follows:

- Yield means natural products brought by property.;

For example, the tree is the original property when it flowers, the fruit is the flower, and the fruit is the yield. Or chickens and ducks are the original property. When chickens and ducks lay eggs, the eggs are the yield.

- Income means a profit earned from the development of the property. This property interest must be made, legally extracted from the property owned by the owner, and not contrary to social morality.

For example, if Mr. X leases a house to Mr. Y for VND 5,000,000 a month, then the house is the original asset, and VND 5,000,000 is the proceeds from the rental, so it is called income.

Similarly, if Ms. A lends Ms. B 100 million (initial asset) at an interest rate of 6%/year, the interest of VND 6,000,000 received from Ms. B is called interest.

For example, property produces both yield and income: when the cow (original asset) gives birth to a calf, the calf is the yield, but if the same cow is the original asset, it can be rented to others to plow, which will generate income.

2. Ownership of original asset yield and income

The grounds for establishing ownership of yields and profits are specified in Article 224 of Vietnam's Civil Code 2015, specifically as follows:

"An owner or a user of property has ownership rights with respect to the yield and income derived from such property as agreed or in accordance with law from the time when such yield and income are derived."

Thus, in this regulation, the person who establishes the ownership rights to the yield and income includes both the owner and the user of the property. Depending on the parties' agreement or according to the provisions of law, the ownership is established.

a. Ownership of yield and income regarding deposit

Mr. A agrees to sell Mr. B a buffalo for 35 million VND. Mr. B paid a deposit of 15 million in advance and promised to bring the buffalo back in 10 days and pay the remaining amount to Mr. A. On time, Mr. B came to pay and brought the buffalo back, but before that, his buffalo was 4 days away. I bought and gave birth to a baby buffalo. So who will this baby buffalo belong to?

According to the provisions of Article 328 of the Civil Code 2015, "deposit is when one party (hereinafter referred to as depositor) hands over to another party (hereinafter referred to as deposit receiver) a sum of money or precious metals, gems, or other valuables (hereinafter collectively referred to as the deposit property) for a period of time to secure the conclusion or performance of the contract." Accordingly, the deposit is only a security measure in the sale and purchase contract. Therefore, during Mr. B's deposit, the buffalo is still owned by Mr. A.

Ownership will only be transferred when Mr. B comes to receive the buffalo and completes the payment. Then the ownership of the property of Mr. A will end from the time when Mr. B's ownership rights arise (Article 238 of the Civil Code 2015). Therefore, during the time the buffalo gives birth to the calf, the ownership of the calf still belongs to Mr. A.

b. Ownership of yield and income regarding mortgage

According to the provisions of Article 316 of the Civil Code 2015 on the return of the pledged property for yields and profits obtained from the pledged property, "The yields and profits obtained from the pledged property shall also be returned to the pledging party, unless otherwise agreed." The essence of a pledge of property is to transfer the ownership of one's property (the pledgee) to another to hold (the pledgee) while the property is still under the ownership of the pledgee. Therefore, if the parties do not agree otherwise, the part of the profits and profits generated during the mortgage operation will still belong to the pledgee.

Mr. X lends Mr. Y VND 20 million for a period of one month and asks Mr. Y to pledge one cow. Mr. Y then brought a cow about to give birth to Mr. X. Two days before the end of the loan term, the cow gave birth to a calf. Thus, between Mr. X and Mr. Y, in addition to the loan contract, there is also a contract to pledge assets to ensure the repayment of the debt. The keeping of Mr. Y's cow does not mean that Mr. X is the owner, but the right to own the cow still belongs to Mr. Y. When the cow gives birth to a calf, the calf is determined to be a yield. If Mr. Y has fulfilled his debt repayment obligation, Mr. X must return the entire property that Mr. Y has pledged, including the cow and the calf, if Mr. X and Mr. Y have no other agreement.

Thus, yields and income are assets arising from existing assets. However, yield is an organic natural product, and yield is a calculated profit in money. Owners and users of assets have the right to receive yields and income, subject to the parties' agreement or the provisions of the law.

Thuy Trong

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