Civil Transactions
Civil Transactions Law (14): Assessment of Damages
The Civil Transactions Law provides that if damages are not predetermined in the contract or by a statutory provision, the court shall assess the compensation in accordance with the following principles:
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Compensation shall cover the full extent of the harm, restoring the injured party to the position they were in, or would have been in, had the harm not occurred.
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The damage for which the liable party must compensate is determined based on the actual loss suffered and the loss of profit, provided that such damage is a natural consequence of the harmful act and could not have been avoided by the injured party through the exercise of reasonable care by an ordinary person.
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Compensation for a wrongful act shall include moral (non-material) damages. Moral damages encompass physical or psychological harm suffered by a natural person as a result of an infringement upon their body, liberty, honor, reputation, or social standing. The right to claim compensation for moral damages is non-transferable, unless its value has been determined by a statutory provision, contractual agreement, or judicial decision. The court shall assess the extent of the moral damage suffered, taking into consideration the nature and type of the harm, as well as the characteristics of the injured party.
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Damages shall be assessed in monetary terms, unless the court, based on the circumstances and upon the request of the injured party, orders compensation in kind, restitution to the original state, or imposes a specific obligation related to the harmful act. The court may also order compensation to be paid in installments or as a periodic annuity, and in such cases, it may require the debtor to provide adequate security.
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