A Study On Spiritual Damage Compensation In Breach Of Contract

There has always been a controversy over the existence of compensation for the mental damages in Contract Law. The traditional civil law theory in our country has made a clear distinction between the liability for breach of contract and the liability for tort. And the compensation for moral damage can only be claimed in the realm of tort law. The mental damage which caused by breach of contract was compensated through the liability concurrence that was set in the article 122 of the contract law, which provides that observant party could claim compensation for mental damages based on tort. With the development of society, there are new situations and new problems in the field of contract law, the traditional theory couldn’t meet the demand of the contract remedies. There are more and more claims for compensation of mental damages that are supported in the cases for the breach of contract in the judicial practice. But there are no clear rules in the current law of our country, and the judge has to broaden the interpretation of the current law as the legal basis in the case. In some circumstances, it is obvious that the spirit is damaged by breach of contract in some contracts and can be predicted too, as a result, it is insufficient to compensate the damages through coincidental liability. Instead, the compensation for mental damages should be included in the liability for breach of contract. There are no related rules in the current law in China, consequently, many gaps are left in the spiritual rights protection in the contract relationship.In order to adapt to the development of the times and the life, not only the Anglo-American legal system countries but also the continental legal system countries admitted the compensation for moral damage in contract breach in their laws. The application scope of the compensation for the mental damages extended to the field of contract law in the international community. With China’s WTO entry, there are more and more civil compensation cases involving foreign element and the laws in our country should be in line with international standards. China should learn the relevant legislative experience from foreign countries in this field, especially the developed countries to protect the contracting parties’ legitimate rights and interests.The essay focuses on analyzing the feasibility of compensation for mental damages in breach of contract. It analyses from the limitation of the traditional contract laws and the flaws of the system of liability concurrence and so on. By analyzing the legislation about the compensation for the mental damage of default and learning useful legislation experience. It is necessary to strictly control the application of the compensation for moral damage in breach of contract by law. Finally I will analyze the current legislation and the judicial practice in our country, and then I will give a few suggestions for Contract Law amendment.