DISPUTE ARISING FROM A DEPOSIT CONTRACT

Case: Dispute over a Deposit Contract over the transfer of land use rights.

Dispute: Request to terminate the Deposit Contract, full refund of the deposit amount and corresponding late payment interest.

Case Summary: In February 2020, Mr. B entered into a Deposit Contract with Company V to secure the transfer of a plot of land in Dong Nai province. Mr. B fully paid the deposit amount of 2.332.600.000 VND (two billion three hundred thirty-two million six hundred thousand dong) as per the agreed payment schedule in the Contract. However, Company V has failed to perform its obligations and violated the deadline for entering into the land use rights transfer Contract, seriously affecting Mr. B’s rights. From August 2022 to October 2023, Mr. B repeatedly worked with Company V to request a solution to the Deposit Contract, but Company V has yet to provide any comprehensive solution to the matter.

Client’s Request: TAPHALAW’s attorney is requested to advise and represent the client in dealing with Company V; To proceed with the termination of the Deposit Contract and demand a full refund of the deposit amount and corresponding late payment interest.

Attorney’s Work Performed:

– The attorney provided legal consultancy and represented Mr. B in negotiations with Company V to resolve a dispute concerning a deposit contract.

– Upon observing that Company V has demonstrated a lack of good faith in cooperating and has consistently cited reasons to delay the processing of the matter despite two in-person meetings, TAPHALAW’s attorney, acting on behalf of the Client, has repeatedly issued written requests to Company V demanding a specific response and a definitive timeline for resolving the Deposit Contract of Mr. B.

– The Attorney presented evidence of Company V’s breach of contract, and demanded the termination of the Deposit Contract. The Attorney further demanded the full refund of the deposit and interest arising from late payment.

– The Attorney advised and drafted a written agreement documenting the mutual agreement of the parties to terminate the Deposit Contract and outlining Company V’s obligation to return the deposit amount to Mr. B.

Dispute Resolution Outcome:

Following the issuance of three written communications and five direct meetings with Company V, the Attorney, on behalf of the Client, successfully negotiated a dispute resolution in accordance with the Client’s desires. Recognizing the financial difficulties of Company V, and considering its inability to immediately refund the entire deposit or pay any interest, the Client agreed to compromise a portion of their rights. Consequently, the parties have agreed to the following terms: (i) Termination of the Deposit Contract between Mr. B and Company V; (ii) Company V shall be obligated to refund the deposit amount of VND 2.332.600.000 (Two billion three hundred thirty-two million six hundred thousand Vietnamese Dong) to Mr. B in six installments. In the event of a default in any installment payment, all remaining installments shall become immediately due and payable; (iii) The parties have agreed to waive any claims for late payment interest.

On October 7, 2024, Company V fulfilled its obligation by making the first installment payment of VND 389.000.000 (Three hundred eighty-nine million Vietnamese Dong) to Mr. B via bank transfer. TAPHALAW has been retained by the Client to monitor and oversee the implementation of the aforementioned termination agreement.