What Is the Difference Between a Memorandum of Understanding (MOU) and a Business Cooperation Contract (BCC)?
Question: What is the difference between a Memorandum of Understanding (MOU) and a Business Cooperation Contract (BCC)? Answer Although both an MOU and a BCC are commonly used in investment transactions, they serve different legal purposes. A Memorandum of Understanding (MOU) is not specifically recognized as a separate type of contract under Vietnamese law. Its […]
What Legal Risks May Arise If a Developer Uses Deposit Funds to Finance a Project?
Question: What legal risks may arise if a property developer uses deposit funds received from customers to finance a real estate project? Answer Under Article 328 of the Civil Code 2015, a deposit is a security measure intended to secure the conclusion or performance of a future contract. In principle, deposit funds are not intended […]
Why Can a “Deposit” Be Regarded as an Advance Payment or Capital Raising?
Question: Why can an amount described by the parties as a “deposit” still be regarded by the authorities as an advance payment or an unlawful capital-raising activity? Answer Under Article 328 of the Civil Code 2015, a deposit is a security measure intended to secure the conclusion or performance of a future contract. In principle, […]
Can a Property Developer Enter into a Deposit Agreement Before a Project Is Eligible for Commercial Sale?
Question: Does Vietnamese law prohibit a property developer from entering into a Deposit Agreement before a real estate project satisfies the legal conditions for commercial sale? Answer Vietnamese law does not expressly prohibit a property developer from entering into a Deposit Agreement before a project becomes eligible for commercial sale. Under Article 328 of the […]