Non-Pecuniary Losses for Breach of Contract: Principles, Models and Spanish Law

Although the most part of international rules and principles (PECL; UNIDROIT Principles; CFR) recognize the compensation of non-pecuniary losses for breach of contract, they do not specify in which cases and under which conditions this compensation will proceed. Comparative law does not seem playing a helpful role on this issue. Whereas some systems, as the United States, England or Germany, reject compensating non-pecuniary losses caused by breach of contract, unless in very few exceptional cases; other systems, as France, Belgium or Spain, generally admit this possibility. However, as the Spanish Tribunal Supremo has declared, compensation for non-pecuniary losses cannot automatically proceed in the presence of every breach of contract. The question is, then, to identify the requirements or the conditions, under which mental distress, physical inconveniences or discomfort arising from breach of contract, can be compensated by Spanish courts.