Compensation for damage is a form of civil liability aimed at forcing the party who causes damage to remedy the consequences by compensating for material losses and mental losses to the aggrieved party. Let’s find out with Lawyer X about “Compensation for damages in contract and outside contract” through the following article:
Legal grounds
Civil Code 2015
The origin of compensation for damage in the contract
Contractual damages are established by the rules governing the regulation of contracts. Existing only when a contract exists, this liability arises when there is a breach of one or more obligations outlined in the contract.
Origin of compensation for damage outside the contract
Compensation for damage outside the contract is a type of civil liability arising outside, not depending on the contract, but only needs to exist as an act of violating civil law, intentionally or unintentionally causing damage to others, and This act is also not related to any contract that may exist between the person causing the damage and the person causing the damage. Damage is not only a fundamental basis but also a mandatory condition of non-contractual damage liability.
Conditions for the occurrence of damage
In the contract
– The parties agree to set forth arising conditions that may include full conditions such as that the party that breaches the contract is not at fault must compensate for damage.
– Damage is not a requirement.
– Just having a breach of duty can arise civil liability. The breaching party is still responsible for whether or not there is damage caused when the other party is in breach of the contract.
– When the contract is signed, the parties are obliged to strictly perform the commitments agreed in the contract. If one party fails to perform, performs improperly, or incompletely, it is a breach of contract.
– The two parties can anticipate and agree in advance on the cases of damage caused by a breach of the contract and how to be responsible such as compensation for damage or penalty for breach of the contract.
Outside contract
– There is damage, fault, illegal acts, and a cause-and-effect relationship between illegal acts and consequences.
– Damage includes physical and mental damage, damage is a mandatory condition. Grounds for arising liability for non-contractual damages include violation of the law, actual damage, and a cause-and-effect relationship between illegal acts and actual damage, at fault.
Nature of liability for compensation
In a contract: A type of civil liability whereby a person who violates a contractual obligation, causing damage to another person, is responsible for compensating for the loss he or she causes.
Outside the contract: A type of civil liability that is only imposed when there is damage, the person responsible for compensation must compensate for that damage.
The basis for determining compensation liability
In a contract: This act is a violation of specific commitments, obligations that the two parties bind each other in the contract, that is, this behavior is not necessarily a violation of the general legal provisions but an only violation of the law established between the parties to the conclusion of the contract
Outside the contract: This behavior is a violation of the provisions of the law in general; regulations issued by the state lead to damage. Therefore, it may be a violation of other specialized laws such as criminal; administrative; economy; etc.
Method of making compensation for damage
In the contract:
– The parties can agree on the level of compensation or penalty for violations since the conclusion of the contract (representing the agreed-upon nature of the contract).
– The indemnification does not release the obligor from the obligation to perform the obligation
Outside contract:
– The party causing damage must make full and timely compensation; both direct and indirect damages; it is important that the parties to the civil liability relationship may not know each other and do not know in advance what will happen to give rise to the civil liability relationship; Therefore, it is not possible to agree on anything in advance.
– The parties can agree on the level of compensation; the form of compensation in money, in-kind, or performing a job; one-time or multiple compensation method; unless otherwise provided by law. Normally will terminate the obligation
Fault factor in damage
In the contract: arising due to the intentional or unintentional fault of the person who does not perform or improperly performs the contract; unless otherwise agreed or otherwise provided by law
Outside the contract: It is also meaningful to distinguish between unintentional and intentional errors, but besides that, the person who commits a violation can hold responsible even if there is no fault in the case of the law.
Please see more
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Compensation for damage caused by goods not meeting the quality standards of Vietnamese law
Frequently asked questions
Contractual damages are established by the rules governing the regulation of contracts. Existing only when a contract exists, this liability arises when there is a breach of one or more obligations outlined in the contract.
Distinguishing between unintentional and intentional errors is also meaningful, but besides that, the person who commits the violation can be responsible even if there is no fault in the case of the law.
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