SUMMARY FOR THE PRECEDENT NO. 12/2020

The Supreme Court of Vietnam has issued a draft of the precedent related to the determination of the validity of collateral agreements in cases where the assets are subject to disputes over outstanding payments.

08/07/2023

Case Summary:

On 04 December, 2009, Ms. L borrowed a sum of 8,000,000,000 VND from a bank under a credit agreement. In the agreement, she pledged her real estate properties as collateral to the bank. However, the two houses that were being used as collateral were purchased by Ms. L from another party, but the delivery of the houses had not been completed due to the outstanding payment not being fully transferred. Noticing that Ms. L had not made the debt payment as stipulated in the agreement, the bank proceeded with a lawsuit to request debt repayment.

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https://drive.google.com/file/d/1gXyN0RL5iBv1mCnt1VFWmQKcqULaqF0T/view?usp=sharing

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

Attention: This legal update is not an advice and should not be treated as such.