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This article summarizes common service contract dispute scenarios in Vietnam encountered in practice for readers to reference.
Dispute Scenario Over Service Quality in Vietnam
Company X signed a contract with Company Y to provide weekly office cleaning services. According to the contract, Company Y committed to using high-quality cleaning products and ensuring the entire office is cleaned weekly, including surface cleaning, vacuuming, and window washing.
After a few months, Company X noticed that the service quality provided by Company Y did not meet the agreed standards. Surfaces were frequently neglected, not thoroughly cleaned, and sometimes felt sticky after cleaning. Despite multiple complaints and requests for improvement from Company X, there were no significant improvements.
Company X decided to seek legal intervention to resolve the dispute. They collected records of complaints and evidence showing the service did not meet contract standards. Company X then filed a lawsuit against Company Y, seeking compensation for poor service quality and the cost of hiring another cleaning service to maintain the desired cleanliness level for the office.
Dispute Scenario Over Non-compliant Service Provider in Vietnam
Company A, a business specializing in event organization, signed a contract with Company B to provide sound and lighting services for a series of important events. The contract clearly specified technical standards and high-quality requirements for equipment and operators.
During the first event, the sound and lighting equipment provided by Company B experienced numerous technical issues causing significant disruptions. Investigations revealed that not only was the equipment outdated, but Company B’s technical staff lacked experience and did not meet the professional requirements agreed upon in the contract.
Company A requested Company B to replace the equipment and operators before the next event. Company B failed to meet this request promptly. Consequently, Company A had to hire replacement services from another provider and demanded reimbursement from Company B for the prepaid fees and additional costs incurred for the new provider. Company B refused to reimburse the costs, leading Company A to file a lawsuit.
Dispute Scenario Over Payment Obligations in Vietnam
Company A signed a contract with Company B to provide management consulting services for one year. According to the contract terms, Company B was to make quarterly payments to Company A based on invoices issued by Company A.
For the first six months, everything proceeded smoothly with Company B making full payments for the invoices. However, in the third quarter, Company B began delaying payments without providing any valid reasons. Despite multiple reminder letters and payment requests from Company A, Company B remained unresponsive.
After several months of non-payment, Company A decided to hire a lawyer and file a lawsuit against Company B. They compiled the invoices, reminder letters, and evidence proving that the services were provided as per the contract.
Dispute Scenario Over Confidentiality Obligations in Vietnam
Company A, a large enterprise, signed a contract with Company B, an IT company, to develop and manage its information system. The contract stipulated that Company B must ensure high data security and not disclose any information to third parties without Company A’s consent.
After some time, Company A discovered that its sensitive information had been leaked. Internal investigations revealed that the leak was related to an employee of Company B who did not adhere to the agreed security and confidentiality measures in the contract.
Company A demanded an explanation and corrective measures from Company B. When they did not receive a satisfactory response and corrective action from Company B, Company A decided to file a lawsuit for breach of contract and sought compensation for the damages caused by the information leak.
Dispute Scenario Over Unilateral Termination of Service Contract in Vietnam
Company A signed a contract with Company B to provide computer system maintenance services for one year. The contract clearly stated that the contract could only be terminated if one party violated the contract terms and did not rectify the violation within the agreed period after receiving a breach notice.
After six months of service, Company B suddenly informed Company A that they would terminate the service due to internal restructuring, which was not related to any violations by Company A. Company A was not notified in advance about this decision and did not have the opportunity to discuss or negotiate the issue.
Company A immediately requested a meeting to discuss the issue and seek a solution, but Company B remained firm in its decision. The sudden contract termination caused significant disruptions to Company A’s operations, prompting them to file a lawsuit against Company B for damages.
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