SCHOOL OF LAW VIETNAM NATIONAL UNIVERSITY, HANOI LE HANG PHUONG MEASURE OF DAMAGES UNDER VIETNAMESE CIVIL LAW GRADUATION THESIS HANOI - 2022 1 VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF LAW LE HANG PHUONG MEASURE OF DAMAGES UNDER VIETNAMESE CIVIL LAW Major: General Legal Studies Student code: 18062023 GRADUATION THESIS Supervisor: Dr. DO GIANG NAM HANOI – 2022 2 DECLARATION I declare that this thesis with topic: “Measure of Damages under Vietnamese Civil Law” is my own research work, the conclusions and data under such graduation thesis are honest and reliable. Hanoi, 22nd May 2022 (Ms) Le Hang Phuong 3 ACKNOWLEDGEMENT Foremost, I would like to express my sincere gratitude towards my thesis supervisor, Mr. Do Giang Nam for his patience, motivation, enthusiasm and immense knowledge.
His guidance helped me in all the time of research and writing this thesis. Besides my supervisor, I am extremely grateful to Ms. Nguyen Thi Bich Thao, Ms. Tran Kien, Mr.
Ngo Huy Cuong and all other professionals and lecturers of Law Faculty of Vietnam National University, Hanoi for their motivation and enthusiasm, for leading me, guidance me and facilitating for all the students in the School of Law, Vietnam National University, Hanoi. Thanks to them, I have learnt so much, and been mature, not only academic knowledge but also valuable practical experience so that I can confidently accept all challenges in the future. My sincere thanks also go to Mr. Vu Thanh Cu, Mr.
Nguyen Kien Cuong and Mr. Dang Trung, Mr. Nguyen Cao Thang, Ms. Le Hong Linh and Ms.
Cao Khanh Linh (NEU) for being my teammate of CISG Pre-moot 2021- Vietnam National Round Moot and FDI Moot National Round 2021 who accompany with me the very first lesson in arbitration and have always been supportive me in my every single significant event during my student time in SOL-VNU. During my 4 years in law school, I believe that I have had so many opportunities to embrace my career. Thanks to Tilleke & Gibbins and Dungzsrt & Associates where I was and am a legal intern, I have learnt more than I could expect and met people who are enthusiastic with works. They are not only professional, they are also heartfelt.
4 My deep sense of gratitude forwards my parents: “Bố mẹ là điều quý giá nhất con có trên đời. Con sẽ không lùi bước trước bất cứ khó khăn, thử thách nào vì điều con sợ nhất trên đời là làm bố mẹ thất vọng.” Last but not least, for my friend that I have met in SOL-VNU: Do Tue Khanh, Le Thao Linh, Nguyen Phuong Hoa, Do Ngoc Huyen, Trinh Quoc Dat, Nguyen Luu Hoang Nghia, Nguyen Doan Khanh Trung, Dao Hong Phuc, Le Duc Hung and many other friends in Class of K63. These incredible people are always beside me whenever I need and need any advice from them. This thesis is my last assignment in the School of Law- Vietnam National University of Hanoi, closing a life chapter and opening a new, challenging and unpredictable one.
Remaining in my mind are the most valuable memories I have had in SOL-VNU, which will follow me the rest of my life. Hanoi, 18th May 2022, Lê Hằng Phương 5 INDEX OF ABBREVIATIONS Art. Article/ Articles Ibid Ibidem (in the same place) CISG Convention on the International Sale of Goods The 1980 Vienna Convention PECL Principle of European Contract Law UPICC UNIDROIT Principles of International Commercial Contracts 6 TABLE OF CONTENT INTRODUCTION 9 CHAPTER ONE: THE THEORETICAL FRAMEWORK OF MEASURING COMPENSATION DUE TO BREACH OF CONTRACT. The theoretical framework of Breach of contract 16 1.
The definition of contract: 16 2. The legal framework of breach of contract 17 3. The remedy for a breach of contract 18 II. The theoretical framework of Damages 21 1.
The definition of Damages 21 2. The function of damages 21 3. The legal grounds for arising liability for damages: 24 4. The measure of damages due to breach of contract under Common Law and Civil Law 25 4.
There is a prior agreement on the damages: 25 4. There is no agreement on the compensation for damages due to breach of contract 29 4. Theoretical framework of measuring compensation due to breach of contract under Vietnamese Law system. 36 CHAPTER TWO: ANALYSIS, ASSESSMENT AND PRACTICAL APPLICATION OF PROVISIONS ON MEASURE OF DAMAGES 41 I.
The new approach of acknowledgment of Vietnamese law-makers about the compensation for damages due to breach of contract 41 II. The measure of damages provisions under The 2015 Civil Code: 45 1. There is a prior agreement for measure of damages for compensation: 48 1. The prior agreement on the type of compensable damages.
The prior agreement on the liquidated amount (liquidated damage clause) 51 7 2. There is no prior agreement on measure damages for damages between parties. 5 CHAPTER THREE: THE RECOMMENDATION TO AMEND THE CURRENT PROVISIONS ON MEASURE OF DAMAGES 62 I. The advantage of the current provisions on measure of damages 62 II.
The limitation of the provision of measure of damages for compensation under the 2015 Civil Code: 63 III. The recommendation on the measure of damages for compensation due to breach of contract: 65 GENERAL CONCLUSION 72 BIBLIOGRAPHY 73 8 INTRODUCTION I. Regarding Rationale of the study Contract is one of the main legal means used by all individuals and organizations to satisfy their needs in all aspects of lives. Due to the importance of contracts to social life, legal systems around the world place contract law at the center of private law and are always interested in improving and developing this field of law.
If the establishment of a contract is the process by which the parties agree on the terms of the contract, contract performance is the process by which the parties turn the terms they have voluntarily committed to come true, fulfilling the rights and obligations they wish to achieve. When entering into a contract, usually the parties will voluntarily fully implement the terms that they have voluntarily committed. However, in some cases, due to subjective or objective reasons, the obligor fails to properly perform the obligation as committed, causing damage to the obligee in the contractual relationship. In order to overcome the adverse consequences brought about by the obligor's breach of contract, the contract law of all countries provides for solutions to help the aggrieved party to overcome the consequences caused by the breach of contract caused by the contract of the obligor, thereby helping the aggrieved party to protect the legitimate rights and interests due to the breach of the contract.
Compensation for damage due to a breach of contract is an important legal measure that plays a role in compensating the aggrieved party (the obligee) for losses resulting from the breach of contract. In legal systems, the principle of compensation is to put the aggrieved party in the position it would have been if the contract had been properly performed, although, legal systems also have differences in this measure such as compensatory damages, grounds for 9 applying compensation measures, determination of compensation levels, cases where liability is exempted. Compensation for breach of contract is not a new legal issue in modern legal systems, but it is an issue that has not received adequate attention in the Vietnamese legal system. For example, what damages can be compensated, the basis for applying compensation measures? In what cases is the breaching party exempt from liability for damages? These are issues that have not been completely resolved in Vietnamese contract law.
Therefore, studying the provisions of Vietnamese contract law in relation to the modern contract law of some countries such as France and the UK, as well as important international legal documents on contract law in order to learn from that experience for the improvement of Vietnamese contract law in applying the measure of compensation for damage caused by a breach of contract is necessary both in theory and in practice. That is the reason for the student choose the topic "The measure of damages due to breach of " as the topic of my graduation thesis II. Purpose and mission of the study 1. Purpose of the study: The purpose of the graduation thesis is through the study of theoretical and practical issues of the provisions of Vietnamese law on compensation for damage caused due to breach of contract in Vietnam, on the basis of comparison to provisions on compensation for breach of contract of some countries and a number of international legal documents in order to contribute to clarifying and enriching the theoretical, practical and legal basis of the compensation for damage caused due to breach of contract, selectively absorb advances in international law, at the same time, make specific recommendations to amend and supplement inadequate and inadequate provisions in the current law, improve the legal mechanism to adjust compensation for damage caused by 10 breach of contract according to the trend, modernity and integration, thereby improving the regulatory efficiency of Vietnam's contract law.
Mission of the study: To accomplish the above purpose, the thesis has the following specific tasks: - Clarifying theoretical issues on compensation for damage caused due to breach of contract, such as: the concept and nature of remedial measures for breach of contract, compensation for damage caused by breach of contract; clarifying the theoretical issues about the grounds for applying the measure of compensation for damage caused by the breach of contract, the cases of exemption from liability for damage compensation, determination of the level of compensation for damage, etc. - Research and compare Vietnamese contract law with French contract law,UK (typical of Civil law and Common law systems) and international legal documents on compensation for breach of contract. From the comparative research, the thesis will propose to acquire good experiences, suitable to the political, economic and social conditions of Vietnam - Propose specific directions and solutions to improve the regulations of the 2015 Civil Code and a related law on the measure of compensation for damage caused by a breach of contract. Object and scope of the study 1.
Object of the study: The research object of the thesis is the provisions of the 2015 Civil Code, the 2005 Civil Code and legal documents related to the measure of compensation for damage caused by a breach of contract such as the 2005 Commercial Law, the 2014 Construction Law, Maritime Code in 2015, Law on Medical Examination and Treatment in 2009, Law on Lawyers in 2012, the 2006 Law on Civil Aviation (amended, added in 2014). Besides, some judgments of 11 Vietnamese courts will also be used and studied in the thesis to illustrate the research results. The research object of the thesis also includes the contract law of two typical countries in the Civil law system, the Common law is France, the UK and some international legal documents on contracts such as the 1980 Vienna Convention on Contracts. contract for the international sale of goods (hereinafter referred to as the CISG), the Unidroit Code of Conduct on International Commercial Contracts (hereinafter referred to as the UPICC), Principle of European Contract Law (hereinafter referred to as the PECL for short).
Scope of the study: On the rules in the text clearly state the theory, research focuses and clarify the following issues: Firstly, on the basis of the law on compensation for damage caused due to breach of contract, the thesis will focus on researching and clarifying the rationale for compensation for damage due to breach. Secondly, the thesis focuses on clarifying the provisions of the 2005 Civil Code, the 2015 Civil Code, the 2005 Commercial Law and some relevant legal documents on compensation for damage due to the scope of the contract. Thereby clarifying the changes of the Civil Code in 2015 compared with the Civil Code 2005.