13 Nguyễn Thị Hoa Business Law Assignment

HANOI UNIVERSITY
FACULTY OF MANAGEMENT AND TOURISM

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BUSINESS LAW

ASSIGNMENT

Topic: Analyze one contract dispute based on legal
regulations on contract

Lecturer: Mrs. Ho Thuy Hang
Tutor: Mr. Hoang Nam
Student Name: Nguyen Thi Hoa
Seat Number: 13
Student ID: 1904040046
Tutorial: 01

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8𝑡ℎ 𝑀𝑎𝑦, 2023

CASE STUDY: Judgment No.: 01/2022/KDTM-PT

May 24, 2022

Disputes on the sale of goods contract

Contents of The Case

Plaintiff: T Construction and Trading Joint Stock Company – Company T

Defendant: S Construction Traffic Joint Stock Company – Company S

In 2016, T Construction and Trading Joint Stock Company (hereinafter referred to as Company
T) and Construction Traffic Joint Stock Company S (hereinafter referred to as Company S)
signed two sets of purchase and sale contracts to supply asphalt and emulsion products for the
construction of the Bac Giang-Lang Son BOT expressway project.

During the implementation of the above two sets of contracts, Company T has repeatedly
delivered goods to Company S at the construction site of the Bac Giang-Lang Son BOT
expressway project and the asphalt mixing station of Company S in Bac Giang province. As of
October 13, 2017, Company S has paid Company T an amount of VND 13,800,000,000, which
is an advance payment as agreed in the contract.

However, during the construction period, due to the arrangement of capital between the bank and
the investor, the project was recalculated, so the project was canceled. interrupted for 2 months
due to a change in investor structure. After restructuring the capital source for the project to
continue construction, Company T stopped supplying hot plastic to Company S and arbitrarily
broke the contract without giving any reason.

After that, there was a conflict between Company T and Company S. Company T believes that
the remaining principal amount that has not been paid by Company S to Company T is VND
1,148,737,100, but Company S does not cooperate to transfer debt or use other assets to pay
Company T. Finally, Company T decided to file a lawsuit against Company S at the People's
Court of District, Bac Giang Province, where the contract was performed, and proposed that
Company S pay a total amount of 3,303,657,143, including principal interest, interest up to the
date of trial by the first instance court, and money for breach of contract.

Analyzing the case study

According to Article 430, 431 Civil Law 2015, this sale contract is considered a legal contract
because of the agreement between company T and company S, which is confirmed by both
parties. Whereby Company T is obligated to transfer the ownership rights of property to
Company S, which is asphalt and emulsion products for the construction, until the conflict
happens.

However, during the 2-month interruption, Company T stopped supplying materials for
construction to Company S and arbitrarily broke the contract without giving any reasons.
According to Clause 5, Article 428, Civil Law 2015, about unilateral termination of performance
of contracts, Company T does not complete the seller's obligation in transferring the property to
the purchaser.

Regarding the payment method and payment term as agreed in the contracts and contract
appendices, it is clearly stated that the goods delivered by both parties must be fully signed by
the authorized representative to sign for certification. At the end of the contract, there should be a
reconciliation to confirm the amount of debt between the two parties for settlement. However, in
terms of debt reconciliation between the two companies that has not yet been realized, the given
data is not reasonable; the quantity does not match, and the price does not match from time to
time, although the leaders of company S have called many times before to require the leader of
company T to let the person compare the debt to make payment procedures, but company T
deliberately did not do it. (There is evidence to confirm which was sent to court.)

In the event that a dispute in the sales contract occurs, there are two options for resolution,
including arbitration and economic court. In this context, when Company T assumed that
Company S did not pay debt for them, they decided to do so thanks to the intervention of the
court in Ha Giang province, claiming that Company S did not cooperate to transfer debt to pay
Company T according to Article 429 of the Civil Law 2015.

As a result, in the first instance judgment No. 03/2021/KDTM-ST dated November 17, 2021, of

the People's Court of H City, after considering the factors and evidence provided by both parties
based on the laws, Ha Giang province decided:

Firstly, no one accepted all petitions for T Construction and Trading Joint Stock Company.

Second, about the court fees: T Construction and Trading Joint Stock Company must bear the
amount of the civil court costs, which have a value of 106,567,000 VND.

To sum up, the case study above helps us apply our knowledge of economic law in analyzing a
real case, and, at the same time, that made me expand the lessons related to this subject.

REFERENCES

Tòa Án Nhân Dân Tối Cao, Trang Thông Tin Điện Tử Công Bố Bản Án Và Quyết Định Của Toàn
Án. Retrieve from:

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Civil Law, 2015. Retrieve from:

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