Quantification of damages for non-pecuniary losses deriving from breach of contract

Abstract The existing principles of quantification of damages for non-pecuniary losses deriving from breach of contract which are adopted by the courts or advanced in the legal scholarship appear to be arbitrary and founded on certain misconceptions. This paper proposes three different models for assessment based on the consequences of breach. When the performance is possible after the breach, the damages are equal to the value of an alternative subject matter if such is available from elsewhere. If there are no other sources from where the bargained-for subject matter can be obtained, then the amount of the damages is based on the value of a substitutive benefit which leads to attainment of the initial contractual aim. If the promisee has no interest in delayed performance, the damages are quantified with respect to a different non-pecuniary benefit which is commensurable to the one that was pursued with the contract initially.