Case law No. 09/2016/AL regarding determination of average overdue interest rate on the market and payment of interest upon a fine, compensation for damage.
October 15, 2020 Case Law
This case law was approved by the Judicial Council of the Supreme People’s Court on October 17, 2016 and promulgated under Decision No.698/QD-CA dated October 17, 2016 by the Chief Justice of the Supreme People’s Court.
Source of this case law: Cassasion Decision No. 07/2013/KDTM-GDT dated March 15, 2013 issued by Judicial Council of the Supreme People’s Court regarding the trading, commercial case of “Dispute over the sale & purchase contract” in Bac Ninh Province between Vietnam – Italy Steel Joint Stock Company as the plaintiff and Hung Yen Metal Joint Stock Company as the defendant; people with related interests and obligations are Ms. Le Thi Ngoc Lan and Mr. Le Van Dung.
In the case of “Dispute over the sale & purchase contract”, since the seller commits a breach of the contract due to failure of delivery or omission from the good delivery to the buyer, which leads the obligation of refund whole deposit amount plus late payment interest. Furthermore, an average interest rate shall apply, which is recognized by 03 local banks at the time of the payment (the first instance trial onwards), unless both the parties have another agreement or comply with other regulation of the law. On the other hand, if the sale & purchase contract regulates a fine for said breach of the contract or compensation, a person bears the fine or said compensation, but no interest on the fine or the compensation.