Non pecuniary losses (Contract)

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Non pecuniary losses include anxiety, distress, disappointment, loss of reputation and others. Such losses are generally not compensated by damages under contract law. However, they can be compensated if:[1]

  1. They result from physical inconvenience caused by the breach of contract.
  2. The entire purpose of the contract was to provide enjoyment, a freedom from distress etc (ie, cruises and holidays).

This article is a topic within the subject Contracts.

Required Reading

Paterson, Robertson & Duke, Contract: Cases and Materials (Lawbook Co, 11th ed, 2009), pp. 688-698 [27.155-27.200].

References

Casebook refers to Paterson, Robertson & Duke, Contract: Cases and Materials (Lawbook Co, 11th ed, 2009).

Textbook refers to Paterson, Robertson & Duke, Principles of Contract Law (Lawbook Co, 3rd ed, 2009).

ACL refers to the Australian Consumer Law.

  1. "[D]amages for disappointment and distress are not recoverable unless they proceed from physical inconvenience caused by the breach or unless the contract is one the object of which is to provide enjoyment, relaxation or freedom from molestation. In cases falling within the last-mentioned category, the damages flow directly from the breach of contract, the promise being to provide enjoyment, relaxation or freedom from molestation.":Baltic Shipping v Dillon (1993) 176 CLR 344, 359
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