Breach of Contract and Damages for Non-Pecuniary Loss

Abstract

The purpose of this article is to investigate whether non-pecuniary interests of the parties should be protected in contract law and what should be the scope of such protection. The paper sheds light on the theoretical framework of contract remedies and claims that moral damages are necessary for an adequate protection of the interests of the parties to a contract. It further investigates the policy arguments against the recoverability of non-pecuniary loss in contract law and argues that such arguments cannot be considered a sufficient justification for a bar to moral damages. Finally, based on a survey of case law from several European jurisdictions, the article provides insight into the kinds of non-pecuniary consequences that may arise from a breach of contract.