Compensation for damage caused by sources of extreme danger in Vietnam

Compensation for damage caused by sources of extreme danger in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What are the sources of extreme danger?

Sources of extreme danger comprise motorized means of transport, power transmission systems, operating industrial plants, weapons, explosives, inflammable substances, toxic substances, radioactive substances, dangerous animals and other sources of extreme danger as provided by law.

An owner of a source of extreme danger must comply strictly with the regulations on taking care of, preserving, transporting and using sources of extreme danger in accordance with law.

(Clause 1, Article 601 of the Civil Code 2015)

2. Compensation for damage caused by sources of extreme danger in Vietnam

According to Article 601 of the Civil Code 2015, compensation for damage caused by sources of extreme danger is as follows:

- An owner of a source of extreme danger must compensate for damage caused by such source. If the owner has transferred possession or use of the source of extreme danger to another person, such other person must compensate [for the damage], unless otherwise agreed.

- An owner, or person to which an owner has transferred the possession or use, of a source of extreme danger must compensate for damage caused by such source, even where such owner or person is not at fault, except in either of the following cases:

= The aggrieved person is entirely at fault for intentionally causing the damage;

= The damage occurred due to an event of force majeure or in an emergency situation, unless otherwise provided by law.

- Where a source of extreme danger is taken into possession or used unlawfully, the person possessing or using [it] unlawfully must compensate for damage.

Where an owner, or a person to which an owner has transferred possession or use, of a source of extreme danger is at fault by allowing the unlawful possession or use of the source of extreme danger, the owner, or the person to which the owner has transferred possession or use, of the source of extreme danger as the case may be must compensate jointly for the damage.

3. Principles of compensation for damage caused by sources of extreme danger in Vietnam

Principles of compensation for damage are specified in Article 585 of the Civil Code 2015 as follows:

- 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.

4. Grounds giving rise to liability to compensate for damage caused by sources of extreme danger in Vietnam

- 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 the Civil Code 2015 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 of the Civil Code 2015.

(Article 584 of the Civil Code 2015)

Nguyen Ngoc Que Anh

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