Foreign experiences on liability to compensate for emotional distress damage caused by a breach of contract and lessons learnt for Vietnam

Abstract

Due to the socio-economic development, the spiritual demands of individuals are increasing, such as improving physical appearance, health care... Therefore, numerous transactions in relation to such respects are signed. In the course of transaction performance, it is common for the obligor to fail to perform the contractual obligations or to perform incompletely or improperly the contractual obligations. Obviously, when any breach of contract occurs, the parties to such contract want their rights and interests to be protected. Consequently, when the breach of contract gives rise to emotional distress damage, the liability to compensate for emotional distress damage is issued pursuant to Article 419 of the Civil Code 2015. However, the contract laws of Vietnam still have some shortcomings in relation to the liability to compensate for emotional distress damage caused by a breach of contract, particularly drawbacks relevant to i) The cases of compensation for emotional distress damage caused by a breach of contract; ii) The level of compensation for emotional distress damage caused by a breach of contract; iii) The form of compensation for emotional distress damage caused by a breach of contract. Thus, this article analyses and comments on foreign experiences on liability to compensate for emotional distress damage caused by a breach of contract while comparing it with regulations and practical application in Vietnam in order to draw some lessons for Vietnam to enhance laws and advance the effectiveness of applying the above-mentioned regulations in practice.