PART II.

CASE STUDIES (40 marks)

In January 2014, Thai Binh Corporation, having its head office in Vietnam Singapore
Industrial Part, Thuan An, Binh Duong (“Thai Binh”) and Hong Ha Ltd, having its head
office in LinhTrung Industrial Zone, Thu Duc, Ho Chi Minh City (“Hong Ha”) signed a
contract under which Thai Binh agreed to sell to Hong Ha a food processing system at the
price of VND 3 billion including VAT (the “Contract”). According to the contract, the price
includes: transportation and installation of the system at Hong Ha factory before end of July
2014, training services for Hong Ha employees to use the system, maintenance services and
warranty for 12 months from the handover date. The contract also states that Thai Binh will
send experts to help Hong Ha fix any problems relating to system breakdown. Any
damages caused by the late arrival of experts (for normal situation) will be fully
compensated by Thai Binh. Furthermore, it is agreed that penalty for breach of contract
shall be 10% ofthe contract value. The Contract also has a clause saying: “Any dispute shall
be settled by peaceful means. In case of failure, the parties will refer the case to Economic
(Commercial) Arbitration in Vietnam for resolution”.
The system was successfully delivered, installed and handed over to Hong Ha on 25 th July
2014 as contracted.
On 30th September 2014, the system broke down and operation was therefore suspended.
Hong Ha requested Thai Binh to send experts to come and troubleshoot as soon as possible
on the next day. Unfortunately, on the 1 st October 2014, a huge riot took place in Binh
Duong that shut down all activities for many days and prevented Thai Binh's experts to get
to Hong Ha factory. On the same day, Thai Binh sent a letter to Hong Ha explaining the
problem and promised that experts would be sent to Hong Ha right after the end of the riot.
Hong Ha is not happy with the news because 1 day of suspension costs them VND 100
million. The company believes that Thai Binh has breached the contract.
a. Please advise Hong Ha whether the company could demand for penalty as well as
compensation?
Hong Ha wants to initiate a lawsuit at the court because the company thinks that initiate a
lawsuit at an arbitration center would be costly and it has just suffered a huge lost from the
suspension.
b. Please advise Hong Ha whether the company can resolve their problem at the court
or not? Thong tao

1
Assume that Hong Ha agreed to wait for Thai Binh's experts. The riot ended on the
3rdOctober, but until 5thOctober (2 days after the end of the riot), none of them showed up
without any explanation. Hong Ha then made a minute to record the issue and hired a third
party’s experts to repair the system at the cost of VND 50 million. The total lost are
thereforeVND 550 Million (Hong Ha lost VND 100 Million per day for 5 consecutive days,
plus the cost of hiring external experts).
c. Please advise whether Hong Ha has any legal ground to initiate a lawsuit against
Thai Binh in this situation.
d. How much money would Hong Ha be able to claim back from Thai Binh?

___________________The end_________________________

a. Due to the riot -> cannot go to fix the machine

- Neu muon giai quyet o toa an, ca hai ben lien quan phai dong y huy thoa thuan
trong tai.
b. Vi pham warranty. Yes co quyen kien.
c. How much? 300tr tien phat, max 250tr tien boi thuong = max 550tr.