When Can the Buyer Suspends the Payment of the Goods Under International Sale Contract?

In the execution of sales of goods contract, there are cases in international trade that allow buyer suspend the payment of the value of the goods to the seller.

According to Article 51 Law on Commerce 2005, it is regulated that, unless otherwise agreed, the suspension of payment for goods is provided for as follows:

- The buyer that has proofs of deceit of the seller shall have the right to suspend the payment.

- The buyer that has proofs that the goods are subject to a dispute shall have the right to suspend the payment until the said dispute is settled.

- The buyer that has proofs that the seller has delivered goods which do not conform with the contract shall have the right to suspend the payment until the seller remedy such inconformity.

However, it is suggested that the buyer or the seller to consult with international trade lawyers in Vietnam for specific situations in potential contract dispute to avoid breaching the agreements.