Liability for damage compensation is one of the civil liabilities of a person who causes damage to others to compensate losses and remedy consequences to an aggrieved party. The liability for damage compensation is typically divided into the liability for contractual damage compensation and non-contractual damage compensation. The differences between contractual damage compensation and non-contractual damage compensation are as follows:
| Points of differences | Compensation for contractual damage | Compensation for non-contractual damage |
| The ground giving rise to the liability | – A contract is engaged between parties;
– Having an act of breach of an obligation in the contract;
– Having damage occurred;
– There is a cause-and-effect relationship between the act of breach of an obligation in the contract and the occurred damage. |
– There is no agreement between parties;
– Having an act of illegally infringing life, health, honour, personality, prestige, property, right and legal interest of others; – Having damage occurred; – There is a cause-and-effect relationship between the illegal infringement and the occurred damage. |
| The subject is responsible for compensation | The parties are engaged in a contract | The person causes damage or its parent, guardian, school, hospital, or a legal person managing the person causing damage; the owner or the possessor of the property causes damage. |
| Violation | A violation is specified in a contract between parties, this behaviour may violate a law or violate provisions made by parties themselves | An act violates a law |
| Implementation methods | Performance of compensation is under an agreement between parties before or after the damage occurred. | After damage occurs, parties can agree on the level of compensation, the form of compensation in cash, in-kind, or performing a job, the compensation method once or many times |
| Responsible solidarity | It must be specified in a contract | Violating parties must bear joint responsibility according to the provisions of civil law |
Above is an overview of the views of differences between contractual damage compensation and non-contractual damage compensation. If you have trouble with legal issues regarding differences between contractual damage compensation and non-contractual damage compensation, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam which currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi, and Danang. Phuoc & Partners. It is rated as one of the leading consulting firms specializing in civil litigation in Vietnam that has leading practice areas in the legal market such as Labour and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing customers with optimal and effective service.
