Compensation for damage caused by breach of contract

Hi DMS Law office in Vietnam! Could you advise me about grounds of compensation for damage caused due to breach of contract ? Thank you!

Hi!

Liability for compensation due to breach of obligations:

In case there is a damage caused by breach of an obligation, the duty-bearer must compensate for the whole damage, unless otherwise agreed or prescribed by law.

Damage caused by breach of obligations:

Damage caused by breach of obligations comprises physical damage and spiritual damage.

The physical damage means those actual physical losses, comprising loss of property, reasonable expenses to prevent, mitigate or restore the damage, and the actual loss or reduction of income.

Spiritual damage means losses related to life, health, honor, dignity or reputation and other personal benefits of an entity.

Compensation for damages in case of the aggrieved party at fault

Where the breach of the obligations and damage incurred due to part of the fault of the aggrieved party, the breaching party shall only be required to pay damages corresponding to its level of fault.

Fault in civil liability

Fault in civil liability includes intentional fault and unintentional fault.

Intentional fault means that a person is fully aware that its act will cause damage to another person but, nevertheless, performs the act and, irrespective of whether or not it so wishes, allows the damage to occur.

Unintentional means that a person does not foresee that its act is capable of causing damage, even though it knows or should know that the damage will occur, or where it does foresee that such act is capable of causing damage but believes that the damage will not occur or will be able to be prevented.

Compensation for damage caused by breach of contract

The damage to be compensated for breach of contractual obligations is determined in accordance with Clause 2 of this Article, Article 13 and Article 360 of this Code.

The right-holder may demand compensation for damage to benefits that he/she supposed to be enjoyed by the contract offer. The right-holder may also request the default party to pay the costs incurred due to its non-fulfillment of contractual obligations which do not overlap with the compensation for damages for contractual benefits.

At the request of the right-holder, a court may compel the default party to pay spiritual damages to the right-holder. The damages shall be decided by the court according to contents of the case.

Therefore, the grounds for compensation for damage include: there is a breach of obligation, there is a cause-effect relationship between the breach and the damage; there is a fault of the breaching party. If the breaching party is fault, but there is no actual damage occurred, the breaching party is not liable to pay compensation (Articles 306, 361, 363, 364, 419 The Civil Code No. 91/2015/QH13 dated November 24, 2015).

Related topics:

Legal status of a branch or a representative office

Penalty for breach of contract

Consulting services:

Phone: 0914 165 703 or Email: dmslawfirm@gmail.com

Compensation for damage caused by breach of contract