When damage occurs, the person causing the damage must compensate according to reality. The parties can agree on the level, form and time of compensation. So are there any cases that cause damage but do not require compensation?
1. 04 cases of exemption from compensation liability in the contract
A contract is an agreement between the parties on the establishment, change or termination of civil rights and obligations based on Article 385 of the 2015 Civil Code .
Accordingly, claiming compensation for damages as well as liability for damages is one of the important contents that contracting parties must pay close attention to.
Notably, in not all cases of contract violation, the violating party must compensate for damages. Specifically, if requesting to cancel the contract, in the following cases, the person violating the contract does not have to compensate for damages:
– Due to the agreement of both parties: Because the contract is an agreement between the parties, if the parties agree, the party violating the obligation may not have to compensate for damages. At the same time, if a breach of contract is a condition for cancellation that the parties agreed upon, there is no need to compensate for damages;
– Due to a serious breach of contractual obligations by one party: According to Article 363 of the 2015 Civil Code , a party that violates its obligations must compensate for all damages corresponding to the level of its fault. Therefore, if the contract is canceled because one party violates its obligations, the other party will not have to compensate for damages;
At the same time, a serious breach is considered a failure to properly perform one party’s obligations, to the extent that the other party fails to achieve the purpose of entering into the contract.
– Due to a force majeure event: According to Article 351 of the 2015 Civil Code , the obligor who fails to properly perform its obligations due to a force majeure event is not subject to civil liability unless otherwise agreed or otherwise provided by law. other rule.
In particular, a force majeure event is an event that occurs objectively, is unpredictable and cannot be overcome despite applying all necessary and permissible measures: Diseases, natural disasters …
– Other cases prescribed by Law;
Thus, there are currently 04 cases where contract cancellation may not require compensation.
2. When do we not have to pay compensation for non-contractual damages?
In addition to cases of exemption from liability for damages when breaching a contract, the Civil Code also stipulates many cases in which compensation for non-contractual damages is not required.
Accordingly, anyone who violates the life, health, honor, dignity, reputation, property, rights and legitimate interests of others and causes damage must compensate (According to Clause 1, Article 1). 584 Civil Code 2015 ).
Regarding the exemption from liability for compensation for non-contractual damages, Clause 2 of this Article clearly states:
The person causing the damage is not responsible for compensating for damage in cases caused by a force majeure event or entirely due to the fault of the damaged party unless otherwise agreed or otherwise provided by the Law.
Thus, in some of the following cases, the person causing the damage does not have to compensate for non-contractual damages:
– Due to legitimate defense;
– Due to force majeure events;
– Entirely due to the fault of the damaged party;
– The parties have other agreements…
Notably: The person responsible for compensating for damage may have the compensation level reduced if he is not at fault or has an unintentional mistake and the damage is too great compared to his or her economic capacity.
