CAN THE DEBT BE RECOVERED IF THERE IS NO MINUTES ON DEBT CONFIRMATION IN THE PURCHASE AND SALE OF GOODS?

Debt recovery

My company is located in Danang, specially manufacturing medical masks. We signed a mask sale contract with a company in Binh Duong province. My company transferred all the quantity of goods under the contract to the company's warehouse in Binh Duong and the staffs received the goods. The company in Binh Duong paid 50% of the purchase price. Then, my company sent a minutes on debt confirmation to the company in Binh Duong but we did not receive a response. I would like to ask you if the company in Binh Duong did not sign the minutes on debt confirmation, could my company recover the remaining amount of goods and if I had to sue, which court should I sue?

Thank you for sending a question to Phong & Partners Law Firm and here is our advice. Firstly, the company in Binh Duong takes responsibility for paying enough money under the signed contract. According to your information, your company provided all the goods in accordance with the signed contract and the buyer (the company in Binh Duong) paid 50% of the goods. Therefore, the company in Binh Duong has arisen the payment obligation in accordance with Article 280 of the Civil Code 2015 as "the payment obligation must be fulfilled in full, on time, at the agreed place and method."

Secondly, your company must prove the amount that the company in Binh Duong has not paid. In fact, your company and the company in Binh Duong should sign a minute on debt confirmation to determine the debt of the two parties. As a result, your company must prove the amount owed by that company. For this case, your company must prove how much the goods have been delivered to Binh Duong company; How much has the company in Binh Duong paid and how much has still owed? To attest, your company should give some records and documents such as:

The sale contract between two parties.
Your company's inventory delivery voucher.
Minutes Of Goods Delivery And Reception.
Documents proving that the buyer has only paid 50% of the purchase price.

Hence, your company can recover the remaining amount although the company in Binh Duong does not sign the minutes on debt confirmation.

In case your company wants to file a lawsuit to recover debt, you need to consider the dispute resolution provision of the sale contract between the two parties. If the two parties agree to settle the dispute at the Arbitration Center, you can file a lawsuit at the Arbitration Center; If the two parties agree to settle the dispute at a specific court ( this agreement is not illegal), you shall file a lawsuit at that court; If the parties have not made an agreement on a dispute settlement agency, you have the right to file a lawsuit at the district-level People's Court where the defendant is located or where the contract is performed.

In addition, the prescription for filing a commercial dispute is 2 years from the time when legitimate rights and benefits are infringed under the provisions of Article 319 Law on Commerce 2005.

If you need to understand specifically, please contact us to receive advice from PHONG & PARTNERS’ lawyers.

Phong & Partners Law Firm

Add: 6th Floor, Thanh Loi Building, 249 Nguyen Van Linh Street, Danang city - 0905.102425

Son Tra Branch: 01 Dong Giang street, Danang city - 0905.205624

Lien Chieu Branch: 21 Truong Van Da street, Danang city - 0901.95099

Ngu Hanh Son Branch: 03 Chu Cam Phong street, Danang city - 0905.579269

Tel: 0236.3822678

Email: Phongpartnerslaw@gmail.com

Web: https://phong-partners.com

Debt recovery

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