Damages for breach of contract under Vietnamese law
Damages are a type of claim recognized by Vietnamese law. Article 302 of the Commercial Law defines “damages” as the act whereby the party in breach of a contract (the contract breaker) compensates for loss caused by that party’s breach to the victim of that breach (the claimant). The regime for damages is provided in the Civil Code and the Commercial Law with notable differences between those texts. As the new Civil Code enacted by the National Assembly of Vietnam on November 24, 2015 (the 2015 Civil Code), will take effect from January 1, 2017, this article will provide comment on the relevant rules of this text. It will also give some drafting notes in respect of damages clauses. Please note that this article deals only with damages in contract and not in tort (i.e. when there is no direct contractual relationship between the parties).