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

1. What is compensation for non-contractual damages?

Currently, the law of Vietnam does not specify what is compensation for non-contractual damage, but it can be understood that compensation for non-contractual damage is a liability for compensation that does not arise from contractual relationships;

Those who commit illegal acts infringing upon the life, health, honor, dignity, reputation, property and legitimate interests of others, and cause damage, must pay compensation.

What is compensation for non-contractual damages? 05 notable points regarding this matter in Vietnam (Internet image)

2. 05 notable points regarding compensation for non-contractual damages under the Civil Code 2015

2.1. Grounds giving rise to liability to compensate for non-contractual damage in Vietnam

Article 584 of the Civil Code 2015 stipulates that the grounds for arising liability to compensate for damage outside the contract include:

- 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 this 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 this Article.

2.2. Principles of compensation for non-contractual damage in Vietnam

The principles of compensation for damage are specified in Article 585 of the Civil Code 2015 and guided by Resolution 02/2022/NQ-HDTP, specifically:

-  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.

>> See also: Principles of compensation for non-contractual damage in Vietnam under the Civil Code

2.3. Capacity of individuals for liability to compensate for non-contractual damage in Vietnam

According to Article 586 of the Civil Code 2015, the capacity of individuals for liability to compensate for non-contractual damage is regulated as follows:

- 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 the Civil Code 2015.

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.

2.4. Compensation for non-contractual damage caused jointly by several persons in Vietnam

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.

(Based on Article 587 of the Civil Code 2015)

2.5. Prescriptive period for initiating legal action claiming compensation for non-contractual damage in Vietnam

Pursuant to Article 588 of the Civil Code 2015 and Article 5 of Resolution 02/2022/NQ-HDTP, the prescriptive period for initiating legal action claiming compensation for non-contractual damage is prescribed as follows:

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.

-  If the tortious act is committed before or after January 1, 2017 (the effective date of the Civil Code) and the defendant files a tort claim from January 1, 2017:

The statute of limitations for filing a tort claim is 03 years from the date on which the victim knows or should know that his/her legitimate rights and interests have been infringed.

- The time which the victim knows that his/her legitimate rights and interests have been infringed is when he/she realizes or can confirm that his/her legitimate rights and interests have been infringed.

- The condition that a victim should know that his/her lawful rights and interests have been infringed must be under normal conditions and circumstances, if damage occurs, that person should know his/her lawful rights and interests have been infringed or is required by law that he/she should know.

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