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The Supreme People's Court of Vietnam: Benchbook Online

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2.3.1. Principles of compensation for damages


Related legal documents
  • Civil Code 2005 (Article 605)
  • Resolution No. 01/2004/NQ-HDTP dated 28 April 2004 of the SPCJC (Section 2 of Part I)

  • Main tasks and practical skills:

    • Parties can discuss reaching an agreement regarding level, form and method of compensation. Therefore, it is possible for a compensation method to be agreed upon and its validity is recognized as legally binding. For example: Where two parties agree to compensation once per three years and this has been recognized by the Court, then such compensation shall be conducted accordingly, except as otherwise agreed.
    • «Damage must be compensated in full and promptly» (Item 1 of Article 605 of the Civil Code 2005) is a principle used for determining amounts of compensation which are not specified. For example: A rented house is damaged and cannot be used as a rented house. The owner of the house can request compensation for any loss of income that could have been received by renting the house. If this amount of compensation has not been provided in the laws but it is possible to determine the actual rent lost and damage caused as stated in the above principle, the request for compensation must be accepted.
    • Prompt compensation is a principle which demands and allows the Court to apply one or more provisional measures as provided by procedural laws in order to resolve urgent request of litigants.  Note that there is a provisional measure that can be applied by the Court itself without request by the litigant and it does not require any application of security, that is «Forced to perform part of the obligation to compensate for damage caused by harm to health or life”.
    • Determining conditions for reducing compensation (due to an unintentional act causing damage, the damage is too big in comparison with short-term and long-term economic capacity of the person who caused the damage). Reduction in compensation shall apply only when all the conditions are satisfied.