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Compensation for non-contractual damages under Vietnamese legislation

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Non-contractual damages can arise due to a wide range of factors, including accidents, medical malpractice, defamation, or infringement of intellectual property rights. The Vietnamese legal system recognizes the right of individuals and businesses to seek compensation for such damages, either through civil litigation or alternative dispute resolution mechanisms. This article aims to provide an overview of the legal framework for compensation for non-contractual damages under Vietnamese legislation.

  • Civil Code 2015

Grounds for compensation for non-contractual damages in Vietnam

Under the Civil Code 2015 of Vietnam, person harming the life, health, honor, dignity, reputation, property, or other legal rights or interests of another person, thereby causing loss and damage, must compensate for such loss and damage.

Thus, compensation for non-contractual damages means the indemnification arises from harming the life, health, honor, dignity, reputation, property, or other legal rights or interests of another person
In case property causes loss and damage, the owner or possessor of the property must be responsible to compensate for it.
A person causing loss and damage is not required to be responsible to compensate for loss and damage arising and caused by an event of force majeure or due entirely to the fault of the aggrieved party, unless otherwise agreed or provided by law.

Liability to compensate for non-contractual damages

  • A person of 18 or more years of age who causes loss and damage shall personally take liable to compensate. 
  • Where a minor, or a person who has lost the capacity for civil acts, or a person having difficulties in being aware of, or controlling, his or her acts causes loss and damage but there is a guardian, such guardian shall use the property of the ward to compensate. If the ward has no or insufficient property to compensate, the guardian must do so by recourse to the property of the guardian. If the guardian can prove that he or she does not have a fault concerning guardianship, then the guardian shall not required to use its property to compensate.
  • Where a person who is between 15 and 18 years of age causes loss and damage, such person must compensate by recourse to his or her property. If such person has insufficient property to compensate, the parents of such person must satisfy the outstanding amount by recourse to their property. 
  • Where a person under 15 years of age causes loss and damage, his or her parents, if any, must compensate for the total loss and damage. If the parents have insufficient property to compensate and the minor who has caused the loss and damage has property of his or her own, such property shall be used to satisfy the outstanding amount of compensation, except for the following case:

Damages caused by persons under 15 years old, having lost capacity for civil acts, or under direct supervision of other entities

  1. In case a person under 15 years of age causes loss and damage while under direct supervision of a school, the school must compensate for the loss and damage. 
  2. If a person who has lost his or her capacity for civil acts causes loss and damage to another person while under the direct supervision of a hospital or other legal entity, such other legal entity must compensate for the loss and damage. 
  3. The school, hospital, or other legal entity shall not be required to pay compensation if it proves that it was not at fault concerning supervision; in such case, the parents or guardian of the person under 15 years of age or of the person who has lost his or her capacity for civil acts must compensate.

Principles of compensation for loss and damage

The Civil Code 2015 of Vietnam provides for the principles of compensation for non-contractual loss and damage as follows:

  1. Actual loss and damage must be compensated in full and promptly. Unless otherwise provided by law, parties may agree on the amount of compensation; on the form of compensation, which may be money, in kind, or the performance of an act; on one-off payment or payment in installments; and on the method of compensation.
  1. The compensation payable by a person who is responsible for compensation for loss and damage may be reduced if such person was not at fault or such loss and damage was caused unintentionally and is very large in comparison to the financial position of such person.
  2. If the amount of compensation determined becomes unrealistic, the aggrieved party, or the party having caused loss and damage, has the right to request a court or another authorized State body to change the amount of compensation.
  3. Where an aggrieved party is at fault for causing loss and damage, such party shall not be entitled to compensation for the part of the loss and damage arising from its fault.
  4. A party with infringed rights or benefits shall not be compensated if the loss and damage result from failure to apply necessary and reasonable measures to prevent or mitigate the loss and damage to such party.

Determination of non-contractual loss and damage

Loss and damage caused by infringement of property

  1. Property lost, destroyed or damaged.
  2. Interests associated with the use and exploitation of the lost or impaired property.
  3. Reasonable costs for the prevention, mitigation, and remedy of the damage.
  4. Other loss and damage as provided by law.

Loss and damage caused by harm to health

  1. Reasonable costs for treating, nursing, and rehabilitating health, and functional losses and impairment of the aggrieved person.
  2. Loss of or reduction in the actual income of the aggrieved person. If the actual income of the aggrieved person is irregular and is not able to be determined, the average income level for the type of work performed by the aggrieved person shall be applied.
  3. Reasonable costs and actual income losses of the carers of the aggrieved person during the period of treatment. If the aggrieved person loses his or her ability to work and requires a permanent carer, the damage shall also include reasonable costs for taking care of the aggrieved person. 
  4. Other loss and damage as provided by law.

Damage caused by harm to the honor, dignity or reputation

  1. Reasonable costs for mitigating and remedying the damage.
  2. Loss of or reduction in actual income.
  3. Other loss and damage as provided by law

Loss and damage caused by harm to life

  1. Damage caused by harm to health as mentioned.
  2. Reasonable funeral costs.
  3. Support for the dependants of the aggrieved person. 
  4. Other loss and damage as provided by law.

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Frequently asked questions

Limitation period for initiating legal action claiming compensation for loss and damage?

Three years from the date on which the person with the right to make the request knew or should have known about the infringement of his or her legal rights or interests, that person has the right to initiate legal action claiming compensation for loss and damage

Compensation rate for non-contractual damages to the honor, dignity or reputation?

The parties agree on the amount of compensation for mental suffering.
In case the parties can not come to agreement, the maximum sum payable shall not exceed ten times the basic wage rate provided by the State.

Compensation rate for non-contractual damages to health?

Similarly, the parties agree on the amount of compensation for mental suffering.
In case the parties can not come to agreement, the maximum sum payable shall not exceed fifty times the basic wage rate provided by the State

Conclusion: So the above is Compensation for non-contractual damages under Vietnamese legislation. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com

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