When a person’s lawful right and interest are infringed, the aggrieved person has right to claim compensation for damages arising from the infringement. Understanding what is compensation for damage and solutions is very important to protect lawful right and interest of the aggrieved person. Vietnamese laws are separating compensation for damages into two main groups, including contractual compensation for damages and non-contractual compensation for damages. Issues of contractual compensation for damages will be presented in articles of the commercial business dispute resolution. In this article, we will focus on the concept of what is compensation for damage and solutions for non-contractual compensation for damages.
Non-contractual compensation for damages is a type of civil responsibility which a person shall be imposed when infringing someone’s civil rights. Noting that a person infringing someone’s civil rights is not only in compensation for damages, but also has other liabilities in accordance with laws, including criminal liability, administrative violation enforcement and other civil liabilities.
The concept of what is compensation for damage and solutions for non-contractual compensation for damages is not clearly regulated under the Civil Code 2015. Alternatively, the concept of what is compensation for damage and solutions for non-contractual compensation for damages are provided on the basis of arising compensation liability, principles of compensation, capacity to liability of compensation of the individual, the statute of limitations to file a claim for damages, etc. So what is compensation for damage and solutions in practice?
Regarding the grounds giving rise to liability to compensate for non-contractual damages, Article 584.1 of the Civil Code 2015 stipulates as follows: “A person harming the life, health, honour, dignity, reputation, property, or other legal rights or interests of another person, thereby causing loss and damage, must compensate, unless otherwise provided by this Code and other relevant laws”. It can be understood that the liability of compensation for non-contractual damage arises when meeting the following requirements: (1) act of causing damages is treated as unlawful act; (2) actual damages happened and (3) there is a causality between such unlawful act and such happened actual damages.
Understanding what is compensation for damage and solutions include the ways of (i) agreement between relevant parties about rates of compensation, a form of compensation, method of compensation unless otherwise provided by law or (ii) otherwise, the aggrieved person has right to request a Court to compel a violator to compensate for damages in accordance with law. In filing the case in Court, the aggrieved person must pay attention to the statute of limitations for initiating legal action claiming compensation for damages which shall be 03 years from the date on which the person having right to request compensation knew or should have known that their legal rights and interest were violated.
Above is an overview of what is compensation for damage and solutions. If you have trouble with finding a law firm providing legal assistance regarding the what is compensation for damage and solutions, please do not hesitate to contact us: Phuoc & Partners is a professional consulting firm established in Vietnam and currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners is also rated as one of the leading consulting firms specializing in business law 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 civil litigation service.