Defining A Person Being Liable For Non-Contractual Damages Compensation

In a contractual relationship, one of the conditions for an effective contract is that the participating parties satisfy the conditions for entering into and performing that contract in accordance with the law, and the contract is established under principles of freedom and voluntary. Therefore, the parties in the contractual relationship are the subjects directly responsible for the performance of the obligations as well as for damages arising from that contract, unless otherwise agreed by the parties. However, regarding non-contractual relationships, the parties do not have a prior agreement, so defining a person being liable for non-contractual damages compensation is conducted on the grounds of laws when arising matters of damage compensation.

Two remarkable subjects that can cause non-contractual damages are human and property during defining a person being liable for non-contractual damages compensation. As a general principle, whoever causes damage must make compensation, and in case a property causes damage, the owner or possessor of the user of such property must compensate[1]. However, in some specific cases, the subjects liable for compensation are not in general rules depending on who causes damage.

Defining a person being liable for non-contractual damages compensation in some special cases is as follows:

• A person causing damage as a result of exceeding the requirements of an emergency situation must compensate any aggrieved person for that part of the damage which resulted from exceeding the requirements of an emergency situation. A person creating an emergency situation that leads to the damage being caused must compensate any aggrieved person[2].
• A person who, due to the consumption of alcohol or the use of other stimulants, becomes incapable of being aware of or controlling his or her acts, thereby causing damage to another person, must compensate such person. A person who intentionally causes another person to take alcohol or stimulants, thereby causing such person to become incapable of being aware of or controlling his or her acts, must compensate any person aggrieved thereby[3].
• A legal person must compensate for any damage caused by any person belonging to such person during the performance of duties assigned by it to such person. If a legal person has compensated for any damage, it has the right to demand the person at fault for causing the damage to reimburse it an amount of money in accordance with law[4];
• The State must compensate for damage caused by law enforcers as prescribed in the Law on compensation liability of the State[5];
• Where a person under fifteen years of age causes damage during school hours, the school must compensate for the damage; if a legally incapacitated person causes damage to another person while under the direct supervision of a hospital or another legal person, such hospital or another legal person must compensate for the damage. If the school or the hospital or another legal person prove that they are no-fault of supervision, the parents or guardian of the person under fifteen years of age or the legally incapacitated person must compensate[6];
• In case employees or trainees cause damage while performing their assigned jobs, individuals or legal entities assigning jobs must compensate for damage and have the right to claim the employees or trainees who caused damage due to their fault[7].

Defining a person being liable for non-contractual damages compensation in the case of the property causing damage is considered as follows:

• The owner of the source of extreme danger must compensate for the damage caused by the source of extreme danger; if the owner has assigned it to another person to possess and use it, the assigned person must compensate, unless otherwise agreed[8];
• Any entity polluting the environment, thereby causing damage, must compensate in accordance with the law[9];
• The owner of a livestock must compensate other people for damage caused by the livestock. The person possessing or using the livestock must compensate for damage during the time of possessing and using the livestock, unless otherwise agreed, where the third person is completely at fault for making the livestock to cause damage to the person, the third party must compensate for the damage; if the third party and the owner are at fault, they must jointly compensate for the damage. Where livestock allowed to roam according to customary practice causes damage, its owner must compensate according to customary practice provided that such compensation does not contravene the law or social morals[10].
• Owners, possessors, and persons assigned to manage trees must compensate for damage caused by them[11];
• Owners, possessors, and persons assigned to manage and use other houses or construction works must compensate for damage caused by such houses or other construction works. When the builder is at fault in letting the house or other construction work cause damage, he/she must jointly compensate[12].

Above is an overview of defining a person being liable for non-contractual damages compensation. If you have trouble with legal issues regarding defining a person being liable for non-contractual damages compensation, please 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 service.

[1] Clause 1 and Clause 3, Article 584 of Civil Code 2015.

[2] Article 595 of Civil Code 2015.

[3] Article 596 of Civil Code 2015.

[4] Article 597 of of Civil Code 2015.

[5] Article 598 of of Civil Code 2015.

[6] Article 599 of Civil Code 2015.

[7] Article 600 of Civil Code 2015.

[8] Clause 2, Article 601 of Civil Code 2015.

[9] Article 602 of Civil Code 2015.

[10] Article 603 of Civil Code 2015.

[11] Article 604 of Civil Code 2015.

[12] Article 605 of Civil Code 2015.