Penalties for breach of contract

ASK

I have placed an order through the phone number of company X, which sells through TV, to buy an exercise machine for 10 million VND. Because I changed my mind and asked for a refund, I did not buy anymore, so I called the company right after that and the company told me that if the company sent the goods over and I did not receive the goods, the company forced me to violate the contract. and forced me to compensate double the value of the item ordered over the phone. Can I ask you a question:

Am I violating? When I just talk on the phone?

Image for illustration purposes only (Internet source)

ANSWER

Hello, DHP LAW will answer your questions as follows

According to the information you shared in your case, you have breached the contract with company X. Clause 1, Article 24 of the 2005 Commercial Law stipulates the form of a contract for the sale of goods as follows: “1. A contract for the sale and purchase of goods may be expressed orally, in writing or established by specific acts”.

According to Clause 1, Article 351 of the 2015 Civil Code : “1. If the obligor violates the obligation, it shall bear civil liability towards the obligee.

Breach of obligation means the obligor’s failure to perform an obligation on time, incomplete performance of an obligation, or improper performance of the contents of the obligation.

Thus, you and company X have made a verbal contract that is a telephone transaction. Therefore, you are responsible for civil obligations due to a breach of contract in Article 364 of the Civil Code 2015 :

“Faults in civil liability include intentional errors and unintentional errors.

Intentional error is a case where a person is well aware that his or her actions will cause damage to others but still performs and wishes or, though undesirable, allows the damage to occur.

Accidental fault is a situation where a person does not foresee that his act is likely to cause damage, even though he should have known or could have known in advance that the damage would occur or foresaw that his act was likely to cause damage, but assume that the damage will not occur or be preventable”.

The fine levels are specified in Article 301 of the 2005 Commercial Law as follows:

“The fine level for breach of contractual obligations or the total penalty for many violations shall be agreed upon by the parties in the contract, but not exceeding 8% of the value of the breached contractual obligation portion, unless otherwise specified in Clause 1 of this Article. in Article 266 of this Law”.

Based on the above provisions, company X is only fined 8% of the value of the breached contract obligation.

 

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Post Author: Luật DHP