Currently, the dispute on deposit contracts is a common problem. However, some subjects participating in deposit contracts do not know the legal provisions on this issue to avoid undesirable legal consequences. Lac Duy & Associates notes on deposit contracts so that these civil relations parties can minimize legal risks.
Provisions of the law on deposit contracts
- Deposit is an act whereby one party (hereinafter referred to as the depositor) transfers to another party (hereinafter referred to as the depositary) a sum of money or precious metals, gemstones or other valuable things (hereinafter referred to as the deposited property) for a period of time as security for the entering into or performance of a contract (as stipulated in Article 328 the Civil Code 2015).
- The deposit can be entered separately into an independent deposit contract, or the parties have the right to agree to record the terms of the deposit in the signed contract. Regardless of the form, the legal validity of the deposit agreement is understood to be the same, the establishment of a separate deposit contract only helps the parties to have more detailed, clearer agreement on the deposit and the obligations arising around the deposit.
Notes when signing a contract
- When signing a deposit contract, the buyer needs to determine who is the signer of the deposit contract. If there is an authorization case from the owner, the buyer must determine the authorization limit so that no cases go beyond an authorization limit. And buyers need special attention, the authorization of the owner must have documents and notarization to be legal.
- Clearly defining what the purpose of the deposit is. Usually, the purpose of the deposit is to ensure the signing of the contract, to determine the validity.
- Determination of contents of deposit contracts for sale and purchase: Deposit contracts must comply with regulations on civil contracts, ensuring legality, type of deposit (money or assets of equivalent value), payment method and payment expiry date, , sale price agreement , committing the time and place of conclusion of notarized contracts, expiry date for assigning real estate
- To avoid disputes on deposit contracts, finding a reputable and experienced legal entity in this field to advise is a necessary plan to ensure the interests of each individual and organization.
Lac Duy & Associates has many years of experience in solving problems related to this issue. If you have any questions about a deposit contract dispute or need advice on a deposit contract dispute or other contract disputes, you can contact Lac Duy & Associates for an immediate answer and support
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