Recoverability of Damages for Non-pecuniary Losses Deriving from Breach of Contract

Abstract

Abstract This is the first article that identifies contracts whose breach could cause non-pecuniary losses. It argues that in all cases where the outcome of the promised performance leads to something other than an enhancement of the promisee’s financial standing, the breach will cause him non-pecuniary losses. This proposition provides greater consistency in the law of contract damages. It provides a powerful argument against the existing notion of partial recovery of non-pecuniary losses and replaces it with a more principled and comprehensive approach that is more closely aligned with the general conceptual framework of contemporary contract law. If the principles identified in the present article are applied, all damages, including those for non-pecuniary losses, will be recoverable when the promisee’s performance interest is not satisfied.