Under Chapter XVI of the Civil Code 2015 about some common contracts, the promise to contract of sale is not one of some common contracts. In addition, other laws like the laws on commercial, investment, construction, transport, etc. do not also include any regulations on the promise to contract of sale. Therefore, there is no specific legal definitions and principles applicable to the promise to contract of sale in practice. The judicial practice states that the judicial authority, based on the agreement and real execution of the agreement of parties, will apply regulations consistent with specific facts arising from the execution of the promise to contract of sale between partiers. And so resolving the dispute over promise to a contract of sale is a hard and difficult process for parties.
In the point of view of meaning and common transactions in practice, the promise to contract of sale means an agreement of parties about an establishment and an execution of a contract in which its subject, target, content and conditions are clear but parties in the contract have waited for signing the contract because of any reasons. In practice, the investors and purchasers of real estate to be formed in the future usually enter into the promise to contract of sale during the period that such real estate has not yet met conditions to make them available for trading as specified in Article 55 of the prevailing Law on real estate business. The amount of money that the purchasers of real estate hand over to the investors of the projects during this period may be called in many different ways such as deposit, advance payment, etc. Investors of projects use this type of contract to raise capital informally through promising to sell real estates to be formed in the future to purchasers at preferential rates.
For effectively resolving the dispute over promise to a contract of sale, first of all, it is necessary to make characters of the signed contract clear. Is it a deposit or a sale of property be formed in the future or a valid sale of contract under the name of “a promise to a contract of sale” or a falsification contract to conceal a sale of a property? Thus, resolving the dispute over promise to a contract of sale shall proceed with the following works:
- Defining a defendant and dispute in consistence with the character of contract and real execution between parties;
- Defining laws applicable to a real contractual relationship between parties;
- Defining judicial authorities for resolving the dispute over promise to a contract of sale and judicial proceedings for resolving the dispute over promise to a contract of sale;
- Collecting proof in consistence with defined laws;
- Filing a suitcase and resolving the dispute over promise to a contract of sale at judicial authority.
Above is an overview of resolving the dispute over promise to a contract of sale. If you have trouble with legal issues regarding resolving the dispute over promise to a contract of sale, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam and currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners is also rated as one of the leading consulting firms specializing in business law in Vietnam that has leading practice areas in the legal market such as Intellectual Property, Labor and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing Clients with optimal and effective legal service.