Deposited but not delivered - How to solve?

In case the delivery party does not deliver the goods in accordance with what is signed in the contract despite the deposit, how must it be handled? Consult with DFC Attorney with the case below.

Deposited but not delivered - How to solve?

1. Deposited but not delivered

In February 2019, Huu Due Company (Taiwan China) signed a sales contract No. 0616/HI-HD/2019 with HI Company (in Bac Ninh), the content of the contract is as follows: Huu Due Company ordered by HI Company the number of helmets is 10500, quality must meet the requirements in accordance with Vietnam's technical quality regulations – QCVN2008 and must be inspected and issued a certificate of standard by the Taiwan Inspection Agency. Payment term is divided into two installments: Phase 1: After confirming the order, Huu Due company pays HI company a deposit of 40% of the total order value; Phase 2: After Huu Due company is completed, it will pay 60% of the remaining order value.

During the implementation of the contract, Huu Due Company has made a deposit payment, the porter's fee for HI company to convert Vietnamese currency is 3.15 vnd. However, HI Company does not produce enough quantity and schedule as required. Although the two sides have worked many times to extend the progress, HI Company still does not meet, there is no delivery to Huu Due Company. Huu Due Company said that the capacity of the partner is difficult to meet the requirements, so want to terminate not to continue performing the contract.

Therefore, Huu Due Company reached out to DFC Lawyers for advice with the desire to unilaterally terminate the contract and ask HI company to refund the money paid by Huu Due company; and request HI Company to compensate for damages caused by violations.

2. Advice of DFC Lawyers on cases where deposits have been deposited but not delivered

After receiving the case file information, we point out the difficulties that will be encountered during the settlement process for Huu Due Company as follows:

Advantages:

• The sale and purchase contract is legally valid and signed in accordance with its competence;
• The parties agreed on the will for HI company to violate the delivery obligation leading to unilateral termination of the contract.
• HI company is still operating and able to pay

Difficulties:

• The two parties could not make an agreed on the amount of the refund and the level of damages.
• HI Company is not in good faith to work cooperatively
• Hi's financial viability is not high

3. Steps and order of settlement to recover the deposited amount

To solve the problems that exist and achieve the ultimate goal is to recover the a said amount. DFC lawyers give the following solutions and order of settlement steps to clients:

Step 1:Notice of unilateral termination of the contract:

Based on the quantity of goods delivered at the batches, the quality inspection results are not required (documents confirmed by the Taiwan Inspection Agency); Huu Due Company needs to officially announce the termination of the sales contract No. 0616/HI-HD/2019 due to HI Company violating the obligations agreed upon by the parties as a condition for cancellation of the contract;

Step 2: Meet the negotiations just to request the completion of legal documents

In order to avoid disputes, the parties need to sign together a Memorandum of Understanding / Memorandum of Understanding ... show that hi company violates the delivery obligation and the amount that Huu Due company has paid to serve as a basis for recovering the money received by HI Company.

Step 3:Send a letter requesting HI company to pay the amount received by Huu Due company and compensate for damages.

In order to have grounds for having asked HI company to make payment of the amount paid by Huu Due company and compensate for damages, Huu Due company needs to send a letter requesting payment to HI company.

Step 4: Send lawsuit petitions and accompanying documents at Bac Ninh Court to request the Court to settle.

Because the two parties could not agreed on the refund of the amount paid by Huu Due Company and the level of damages, Huu Due Company needs to initiate a lawsuit for the Court to settle.

4. DFC's advice to customers

Regarding the signing of the contract:

It is necessary to agree firmly on the quantity, type of goods, time, delivery schedule. If violating, how to sanction, it is necessary to clearly agree in detail.

It is necessary to clearly agree on the method of ordering and confirming the order by any method: sending documents or through electronic transactions.

Contract implementation

During the ordering process, the purchase buyer does not require a delivery time limit, does not agree on the process of inspection and inspection of goods quality.

In deposit, payment; the buyer also does not have any guarantees from the seller to ensure the supply of goods as required.

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Above is the advice of DFC Lawyers for customers to refer, any questions that need lawyers to consult and resolve disputes about contracts please contact Hotline 19006512 for answers. Thank you!

Ls. Le Minh Cong