How to Collect Money of Goods When Don’t Make Contract?

Having much experience in debt collection market in Vietnam, Dragon Law is proud to support clients in collect local and international debts.

Many organizations and individuals have business activities in sales of goods, however, they depend on their trust and did not make the sales contract. Then, they often dont know what to do when confilcs happen. How to collect the money of goods if there is no commercial contract?

One of best debt collector in Vietnam in sales contracts, Dragon Law advises that under the Commercial Law 2005, clients should consider about the general provisions on activities of purchase and sale of goods in the Article 24:

“Form of contracts for purchase and sale of goods:

1. Contracts for sale and purchase of goods may be expressed in verbal or written form or established by specific acts.

2. For types of contracts for purchase and sale of goods, which, as provided for by law, must be made in writing, such provisions must be complied with.”

According to the above regulations, only some types of contracts are required to be signed in writing as some goods must be registered with State agencies: motorbikes, automobiles, houses, or some contracts such as electricity, water, international sales contracts ... In other cases, the contract is legally enforced with the two parties. When a dispute arises, it can be resolved by negotiation, mediation, or settlement at the arbitration or court.

According to the Article 317 of Commercial Law 2005:

“Forms of resolution of disputes

1. Negotiations between the parties.

2. Conciliation between the parties by a body, organization or individual selected by the parties to act as the conciliation mediator.

3. Resolution by the Arbitration or the Court.

Procedures for resolution of commercial disputes by arbitration or a court shall comply with procedures applicable to arbitrations or courts provided for by law.”

For the dispute resolution in court, Law on Civil Procedures 2015 stipulated:

“Article 30. Business and/or trade disputes falling under the courts' jurisdiction

1. Disputes arising from business or trade activities among individuals and/or organizations with business registration, which are all for the purpose of profits.

2. Disputes over intellectual property rights or technology transfers among individuals or organizations, which are all for the purposes of profits.

3. Disputes between persons who are not members of a company but involve in transaction in transfer of capital holding and the company and/or its members.

4. Disputes between a company and its members; disputes between a limited liability company and its manager or between a joint-stock company and members of its Board of Directors, its Director or its General Director, or among members of a company regarding the establishment, operation, dissolution, merge, consolidation, total division, partial division, property transfer and/or organizational transformation of the company.

5. Other civil disputes relating to business or trade activities, except for cases within the jurisdiction of other agencies and organizations as prescribed by law.”

However, because of a verbal agreement, the value of proof is very low. If sueing in court, client will find it difficult to justify the agreement as well as the content of the agreement if the buyer denied it. Client need to prepare additional evidence to prove the contract of both parties such as telephone recording, trading words, witnesses, bills of exchange, goods produced by clients ... to ensure client's rights will be protected in court.

The client's obligation of proof is defined in the Civil Procedure Code 2015 as follows:

“Article 91. Obligations to prove

1. The involved parties who petition the Courts to protect their legitimate rights and interests must collect, introduce and supply the Courts with materials and evidences to prove that such petitions are well-grounded and lawful”

Prestigious lawyers in negotiation, litigation in debt collection is always available to offer the best legal services to clients.

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