Write a title that summarizes your document to increase your chances of being found, Summaries of Law

Download Write a title that summarizes your document to increase your chances of being found and more Summaries Law in PDF only on Docsity! Memo From: Paralegal To: Supervisor Re: Liquidated Damages in Vietnam Date: 2024-05-17 Introduction: We have received your instructions to provide a memo on the regulation and enforceability of "liquidated damages" under Vietnamese law. Please confirm if our understanding of the key issues is correct. Answers: Answer to Question 1: Liquidated damages in Vietnam are governed by the Civil Code and the Commercial Law. Article 360 of the 2015 Civil Code states that in case there is damage caused by a breach of obligation, the obligated party must compensate for all damage, unless otherwise agreed or otherwise provided by law. Under Article 418 of the 2015 Civil Code, parties may agree on liquidated damages for breach of contract, which will be the pre-agreed amount payable in the event of a breach. This regulation allows parties to pre-determine damages to avoid lengthy dispute resolutions. Article 419 of the 2015 Civil Code states that 1. Compensated damages due to breach of contractual obligations are determined according to the provisions of Clause 2 of this Article, Article 13 and Article 360 of this Code. 2. The obligee can claim compensation for damages for the benefits he or she would have enjoyed as a result of the contract. The obligee can also request the obligor to pay costs arising from failure to fulfill contractual obligations that do not overlap with the compensation for damages for the benefits brought by the contract. 3. At the request of the person with the right, the Court may force the person with the obligation to compensate for the moral damage suffered by the person with the right. The level of compensation is decided by the Court based on the content of the case.