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Liability for compensation for non-contractual damages in Vietnam

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In some non-contractual circumstances, a person may be responsible for damages that he/she causes. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what are grounds giving rise to liability to compensate for damage according to Vietnam Law? What are principles of compensation for damage? Thanks for answering me!”

  • 2015 Vietnam Civil Code

Grounds giving rise to liability to compensate for damage

– A person intentionally or unintentionally harming the life, health, honor, dignity, reputation, property, or other legal rights or interests of a person, must compensate for such damage, unless otherwise prescribed in Vietnam Civil Code or relevant laws.

– The person who causes damage shall be discharged from liability for compensation in case where the damage incurs due to force majeure events or at entire fault of the aggrieved person, unless otherwise agreed or otherwise prescribed by law.

– If a property causes damage, its owner or possessor must compensate for the damage, except for the damage prescribed in Clause 2 of Article 584.

Principles of compensation for damage

– Actual 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; lump sum payment or payment in instalments; and on the method of compensation.

– The compensation payable by a person having caused damage may be reduced if such damage was caused unintentionally and is very large in comparison to the financial positions of such person.

– If the amount of compensation determined becomes unrealistic, the aggrieved person, or the person having caused damage, has the right to request a court or another competent authority to change the amount of compensation.

– If the aggrieved party is partly his/her fault for causing the damage, that part of damage shall not be compensated.

– The party having rights and interests infringed shall not be compensated if such damage incurs due to his/her failure to adopt necessary measures to prevent the damage.

Capacity of individuals for liability to compensate for damage

– A person of eighteen years of age or older who causes damage shall be personally liable to compensate.

– Where a minor under fifteen years of age causes damage, his or her parents, if any, must compensate for the total damage. If the parents have insufficient property to compensate and the minor who has caused the damage has property of his or her own, such property shall be used to satisfy the outstanding amount of compensation, except in the cases provided in Article 599 of Vietnam Civil Code.

Where a person who is between fifteen and eighteen years of age causes damage, such person must compensate by recourse to his or her own property. If such person has insufficient property to compensate, the parents of such person must satisfy the outstanding amount by recourse to their own property.

– Where a minor, legally incapacitated person, person with limited cognition and behavior control, causes 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 is able to prove that he or she was not at fault with respect to guardianship, the guardian shall not be required to use its property to compensate.

Liability for compensation for non-contractual damages in Vietnam
Liability for compensation for non-contractual damages in Vietnam

Compensation for damage caused jointly by several persons

Where several persons jointly cause damage, they must jointly compensate any aggrieved person. Liability for compensation of each person having jointly caused the damage shall be determined in proportion to the degree of fault of each person. If the degree of fault is not able to be determined, the persons causing damage must compensate in equal shares.

Prescriptive period for initiating legal action claiming compensation for damage

The prescriptive period for initiating legal action claiming compensation for damage shall be 03 years from the date on which the legal rights or interests of an individual, legal entity or other subject were infringed.

Damage caused by infringement of property

In the event of an infringement of property, the compensable damage shall comprise:

– Property which was lost, destroyed or damaged;

– Interests associated with the use and exploitation of the property was lost or declined;

– Reasonable costs for the prevention, mitigation and remedy of the damage;

– Other damage as prescribed by law.

Damage caused by harm to health

– Damage caused by harm to health shall comprise:

+ Reasonable costs for treating, nursing and rehabilitating health, and functional losses and impairment of the aggrieved person;

+ 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;

+ 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.

+ Other damage as prescribed by law.

– A person causing harm to the health of another person must pay the items provided in Clause 1 of Article 590 together with an amount of money as compensation for mental suffering of the aggrieved person. The amount of compensation for mental suffering shall be as agreed by the parties; if the parties are not able to agree, the maximum sum shall not exceed fifty-month base salary prescribed by the State.

Damage caused by harm to life

– Damage caused by harm to life shall comprise:

+ Damage caused by harm to life prescribed in Article 590 of Vietnam Civil Code;

+ Reasonable funeral costs;

+ Support for the dependants of the aggrieved person;

+ Other damage as prescribed by law.

– A person causing death to another person must pay compensation for damage as provided in Clause 1 of Article 591 together with an amount of money as compensation for mental suffering of the closest relatives in the first line of succession to the deceased. If there are no such relatives, this sum shall be paid to the persons who were directly reared by the deceased or to the persons who directly reared the deceased. The amount of compensation for mental suffering shall be as agreed by the parties; if the parties are not able to agree, the maximum sum shall not exceed one-hundred-month base salary prescribed in by the State.

Damage caused by harm to honor, dignity or reputation

– Damage caused by harm to the honor, dignity or reputation shall comprise:

+ Reasonable costs for mitigating and remedying the damage;

+ Loss of or reduction in actual income;

+ Other damage as prescribed by law.

– A person causing harm to the honor, dignity or reputation of another person must pay compensation for damage as provided in Clause 1 of Article 592 together with another amount of money as compensation for mental suffering of the aggrieved person. The amount of compensation for mental suffering shall be as agreed by the parties; if the parties are not able to agree, the maximum sum shall not exceed ten-month base salary prescribed by the State.

Period of entitlement to compensation for damage caused by harm to health or resulting from loss of life

– Where an aggrieved person loses totally the ability to work, the aggrieved person shall receive compensation until the time of his or her death, unless otherwise agreed.

– Where the aggrieved person dies, his or her dependants shall be entitled to receive support for the following durations:

+ A child of the deceased, whether living or conceived prior to his or her death, shall be entitled to compensation until the age of eighteen years, except a child between fifteen and eighteen years of age who is employed and earns sufficient income to look after himself or herself;

+ An adult who is not able to work shall be entitled to receive support until his or her death.

– With regard to the conceived child of the deceased, the compensation shall be paid from the time he/she is born and alive.

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Frequently asked questions

Must a person unintentionally harming the life, health, honor, dignity, reputation, property compensate for such damage?

A person intentionally or unintentionally harming the life, health, honor, dignity, reputation, property, or other legal rights or interests of a person, must compensate for such damage, unless otherwise prescribed in Vietnam Civil Code or relevant laws.

If a property causes damage, who must compensate for the damage?

If a property causes damage, its owner or possessor must compensate for the damage, except for the damage prescribed in Clause 2 of Article 584.

When shall a person who causes damage be discharged from liability for compensation?

 The person who causes damage shall be discharged from liability for compensation in case where the damage incurs due to force majeure events or at entire fault of the aggrieved person, unless otherwise agreed or otherwise prescribed by law.

Conclusion: So the above is Liability for compensation for non-contractual damages in Vietnam. 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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