Procedures for initiating a lawsuit over disputes in goods sale contracts.

Disputes arising from goods sale and purchase contracts are issues that are difficult to avoid in the course of business operations among enterprises. When the parties cannot resolve the disputes through conciliation and resolution is required, the parties typically proceed to file a lawsuit at the competent People’s Court.

So, how should the parties prepare the lawsuit file? What legal provisions govern the disputes between the parties? What is the procedural sequence? What is the statute of limitations for initiating the lawsuit? All of the above matters will be specifically addressed by BKC Law Firm as follows:

I. Legal Grounds for Disputes over Goods Sale and Purchase Contracts

Civil Code 2015

Civil Procedure Code 2015 No. 92/2015/QH13

Commercial Law 2005 No. 36/2005/QH11

Law on Enterprises 2020 No. 59/2020/QH14

II. Statute of Limitations for Initiating a Lawsuit

Pursuant to Article 429 of the Civil Code 2015, the statute of limitations for contractual disputes is stipulated as follows:

“The statute of limitations for requesting the Court to resolve a contractual dispute is 03 years from the date the entitled person knew or should have known that his/her lawful rights and interests were infringed.”

The statute of limitations for initiating a lawsuit regarding a contract is 02 (two) years and is calculated from the date the plaintiff knew or should have known that his/her lawful rights and interests were infringed.

III. Lawsuit File and Methods of Filing the Lawsuit Petition

1. The lawsuit file submitted to the Court includes the following documents and materials:

• Lawsuit petition (according to the form prescribed by the Court)
• Personal identification documents and legal documents verifying the legal status of the plaintiff and other parties involved (such as the defendant and persons with related rights and obligations), including: Investment registration certificate, Business registration certificate, Company charter, Decision on appointment or designation of the enterprise’s representative, Power of attorney for the person participating in the proceedings (if any)… (Note: These documents must be certified copies as required for submission to the Court).
• Agreements, transaction contracts, emails or other documents equivalent to commercial contracts, meeting minutes, contract appendices (if any)…
• Documents and vouchers related to contract performance: goods delivery and receipt minutes, acceptance minutes, payment vouchers, debt confirmation minutes, meeting minutes between the parties, and contract termination minutes (if any)…
• Other transaction documents still held by the parties (if any)…

*Note: If the above documents, evidence, or materials are in a foreign language, they must be translated into Vietnamese or consular legalized in accordance with the law.

2. Methods of submitting the lawsuit file

After preparing the lawsuit file, the plaintiff shall submit the petition along with the prepared documents and evidence to the competent Court by one of the following methods:

• The plaintiff submits the petition and accompanying file directly at the competent Court.
• The plaintiff sends the file to the Court via postal service.
• The plaintiff submits the file online through the Court’s electronic information portal.

IV. Procedures for Handling the Lawsuit File at the Court

1. The Court reviews the lawsuit petition

Pursuant to Clauses 2, 3, and 4, Article 191 of the Civil Procedure Code 2015, the procedures for handling the petition are as follows:

“Article 191. Procedures for receiving and handling the lawsuit petition

2. Within 03 working days from the date of receipt of the petition, the Chief Justice of the Court shall assign a Judge to review the petition.

3. Within 05 working days from the date of assignment, the Judge must review the petition and issue one of the following decisions:

a) Request amendment or supplementation of the petition;

b) Proceed with case acceptance procedures under ordinary procedures or summary procedures if the case satisfies the conditions for summary resolution as prescribed in Clause 1, Article 317 of this Code;

c) Transfer the petition to the competent Court and notify the plaintiff if the case falls under the jurisdiction of another Court;

d) Return the petition to the plaintiff if the matter does not fall under the Court’s jurisdiction.”

Pursuant to the above provisions, within 08 working days from the date of receipt, the Court must review the petition and issue one of the following decisions:

a) Request amendment or supplementation of the petition;

b) Proceed with case acceptance procedures under ordinary procedures or summary procedures if the case satisfies the conditions for summary resolution as prescribed in Clause 1, Article 317 of this Code;

c) Transfer the petition to the competent Court and notify the plaintiff if the case falls under the jurisdiction of another Court;

d) Return the petition to the plaintiff if the matter does not fall under the Court’s jurisdiction.

Accordingly, if the Court accepts the petition for resolution, it will require the plaintiff to pay the advance court fee (if applicable). Thereafter, the Court will issue a notice of case acceptance and proceed with subsequent resolution steps as prescribed.

2. The Court resolves the case at first instance

Pursuant to Clause 1, Article 203 of the Civil Procedure Code 2015, the time limit for trial preparation is stipulated as follows:

“Article 203. Time limit for trial preparation

1. The time limit for trial preparation for various types of cases, excluding cases resolved under summary procedures or cases involving foreign elements, is prescribed as follows:

a) For cases prescribed in Articles 26 and 28 of this Code, the time limit is 04 months from the date of case acceptance;

b) For cases prescribed in Articles 30 and 32 of this Code, the time limit is 02 months from the date of case acceptance.

In cases of complexity or due to force majeure events or objective obstacles, the Chief Justice of the Court may decide to extend the trial preparation time limit, but not exceeding 02 months for cases under point a of this clause and not exceeding 01 month for cases under point b of this clause.

In cases where a decision to temporarily suspend resolution of the case is issued, the trial preparation time limit shall be recalculated from the effective date of the Court’s decision to resume resolution of the case.”

Pursuant to the above, the standard time limit for preparing a case for trial is typically 04 to 06 months.

3. The Court conducts first-instance trial

Within 01 month from the date of the decision to bring the case to trial, the Court must open the trial session.

In cases where the Court finds justifiable reasons, this time limit may be 02 months.

4. Appeal against the first-instance judgment

Pursuant to Article 271 of the Civil Procedure Code 2015, persons entitled to appeal the first-instance judgment are stipulated as follows:

“Article 271. Persons entitled to appeal

Parties, lawful representatives of parties, agencies, organizations, or individuals initiating the lawsuit have the right to appeal the first-instance judgment, decision to temporarily suspend resolution of a civil case, or decision to terminate resolution of a civil case issued by the first-instance Court to request the appellate Court to resolve the case under appellate procedures.”

Pursuant to Article 273 of the Civil Procedure Code 2015, the time limit for appealing the first-instance judgment is stipulated as follows:

“Article 273. Time limit for appeal

1. The time limit for appealing a first-instance judgment is 15 days from the date of pronouncement; for parties, representatives of agencies or organizations, or individuals initiating the lawsuit who were not present at the trial session or at the pronouncement and have justifiable reasons, the appeal time limit shall be calculated from the date they receive the judgment or the judgment is posted.

In cases where the parties, representatives of agencies or organizations, or individuals initiating the lawsuit participated in the trial session but were absent at the pronouncement without justifiable reasons, the appeal time limit shall be calculated from the date of pronouncement.

2. The time limit for appealing decisions to temporarily suspend or terminate resolution of the case issued by the first-instance Court is 07 days from the date the parties, agencies, organizations, or individuals initiating the lawsuit receive the decision or from the date the decision is posted in accordance with this Code.

3. In cases where the appeal petition is sent via postal service, the date of appeal shall be determined based on the date stamped by the postal service at the place of dispatch. In cases where the appellant is in custody, the date of appeal is the date the appeal petition is certified by the prison warden.”

Accordingly, the appeal time limit is 15 days from the date of pronouncement; for parties, representatives of agencies or organizations, or individuals initiating the lawsuit who were not present at the trial session or at the pronouncement and have justifiable reasons, the appeal time limit shall be calculated from the date they receive the judgment or the judgment is posted.

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