The overdue debt interest rate for late payment: From the precedent 09/2016/AL

This essay analyzes the application of overdue debt interest rates on late payment, focusing on Precedent 09/2016/AL, Resolution No. 01/2019/NQ-HDTP, and subsequent court opinions interpreting them to access the appropriateness of "Legal Situation 1" and "Legal Solution 1" of the Precedent 09/2016/AL. Precedent 09/2016/AL commendably expands the scope of Article 306 of the 2015 Law on Commerce, applying it to a wider range of late payments than just purchase prices or service fees. However, the precedent's reliance on the average market rate for calculating interest collides with the specific regulations outlined in Resolution No. 01/2019/NQ-HĐTP. Crucially, we argue that Precedent 09/2016/AL's narrower interpretation compared to the original court opinion it draws from creates an unnecessary limitation. Therefore, we advocate for a broader application of Precedent 09/2016/AL, extending Article 306's reach to encompass all late payments, not just those related to payment of the purchase price or service fee. The interest rate calculation, meanwhile, would be guided by Resolution No. 01/2019/NQ-HDTP unless stipulated otherwise through the parties’ agreement. Importantly, this constructive rate should not serve as a ceiling for any interest rate negotiations between parties.