Breach of Contract and Mental Distress

This study examines the relationship between English contract law and claiming damages for mental distress resulting from breach of contract. It explores the principles of contract law, the issues impacting contract law development, and the obligations and legal consequences of breaches. The study also provides advice on communicating and presenting knowledge in this area.

Breach of contract

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
English contract law relates to claiming damages for mental distress upon breach of contract.
................................................................................................................................................3
Principles of contract law.......................................................................................................4
Issues impacting contract law development...........................................................................6
How a contract is formed and its implication to other parties................................................6
Identify and evaluate obligations of parties to contracts and legal consequences of any
breaches..................................................................................................................................7
Use the primary and secondary sources and give advice.......................................................9
To communicate and present knowledge and understanding...............................................10
CONCLUSION..............................................................................................................................11
BIBLIOGRAPHY .........................................................................................................................12

INTRODUCTION
Mental and physical both kind of distress impact on human being. Sometimes
negligence’s not only gives financial loss to person but can also create problems such as anxiety,
depression etc 1. When two parties comes into contract with acceptance to work according to
each other rights and responsibilities. When one party refuses to work according to their duty
then it is an breach of contract and another party has a right to sue. Breach of contract effects
mental health of an individual due to loss in their business. Study will argue on whether English
contract law relation to claiming damages for mental distress consequent upon breach of contract
or not.
MAIN BODY
English contract law relates to claiming damages for mental distress upon breach of contract.
Mental distress due to breach of contract is both real and significant damage. In the
traditional position the mental distress damages are not recoverable 2. In this genral rule stated
that, plantiff is not entitiled for general damages for mental stress and other kind of intagibles as
humilation, upset, disappintment, furstration and anxiety in the face of breach. Thus, number of
the cases are registered for mental resultuing fron a brach of contract and this generally met with
disfavour by courts. The vast number of the cases are founded to be the commercial tractions and
in such kind of cases recovery for the mental sufferuing is denied.
Different rules and regulation need to be studied before signing a contract. Contract is
made when both parties are agreed to come in a contract. Doctrine are legal framework and set of
rules that are important while judgment in a legal case. Breach in a contract effect overall mental
health of an individual is not able to work effectively. Due to breach in an important contract a
person suffers from anxiety, trauma, depression and illness.
Contract is most important part of a persons life to take legal and important decision. For
example when a person goes to restaurant then to use their services and food they need to enter
1 Harder, S., 2019. Australian perspectives on contract damages. In Research Handbook on
Remedies in Private Law. Edward Elgar Publishing.
2 . Rizzi, M., 2019. Liability of Media Companies for Mental Harm Suffered by Journalists
Reporting on Traumatic Events: YZ (a Pseudonym) V the Age Company Ltd [2019] VCC
148. Marco Rizzi,'Liability of media companies for mental harm suffered by journalists reporting
on traumatic events: YZ (a pseudonym) v The Age Company Ltd [2019] VCC. 148(23). p.3.

into a contract with restaurant to pay money for services. When one party offers money for
goods or for services and other party accepts offer with legal agreement. Both parties need to
have intention to create a legal relation. Need an agreement between both parties. If a contract is
illegal then it will not approve by court.
Mental distress equally cause loss to person as financial loss. There are many situations
occur when person fail to get desire results, in such condition person go through from depression
and other psychological distress which affect health condition of person badly. Hence this think
must be considered by court and there should be compensate for such kind of issues. As in the
case of Shaw vs Leigh day, court has taken decision in the favor of person which has suffered
from depression and judges have taken into consideration the psychiatric injury which occur due
to negligence of professionals 3. Hence it is proven that English contract law considers claiming
damages for mental distress consequent upon breach of contract.
Another example of mental distress is Watts vs Morrow and Farley Vs Skinner where
authorities have not given importance to the distress of victim and it is considered as common
object in this contract.
On other hand Johnson vs Gore wood & co [2001] 2 WLR 72 case result shown that
compensation is only allow in commercial cases that means breach of contract is the part of legal
agreement hence it is essential to meet mental fortitude. .
Principles of contract law
Contract law is done to come in a agreement and arranged in following parts.
1. Formation of contract
2. Contents of contract
3. End of contract
Formation of contract
An individual need an agreement to form an contract parties have to gone through
different stages to form a contract.
Offer
3 Dodeen, M.M., 2019. Compensability of Moral Damage in Islamic Contract Law: A
Comparative Analysis of the Palestinian, Jordanian and Qatari Civil Codes. Arab Law
Quarterly. 1(aop). pp.1-24.

When one party in contract offers to another party to come into a contract. Party invite
each other to develop a legal obligation. Both parties need a positive intention to be in a contract.
Acceptance
When an another party accepts offer and for acceptance of offers both need to have
communication between each other. Both parties have a power to revoke offer anytime before
acceptance. When both parties agree and accepts offer then they come into an agreement.
Consideration
Consideration is a promise that both parties are ready to be a part of a contract. For
example when an individual visits restaurant a person is liable to pay money is consideration for
restaurant's promise to deliver food and after delivery of food is consideration for buyer promise
to pay 4.
Contractual intention
Both parties need to have intention to create a legal intention. They are ready to be in an
agreement. Both are to develop a legal relation.
Contents of contract
Implied terms
Contract comes with different terms which clearly expressed but are require to include in
an contract. Terms help to analyse both parties are ready and accepted their opinion to come in
an agreement.
End of contract
Expiration
When a contract comes to an end due to their fixed expiry date or due to termination of
the contract.
Termination
Breach
When one party refuses to perform his duty in a contract or fail to perform then it is
considered as breach. English law system states that if there is breach of contract in any kind of
legal agreement then person is not liable to get compensation that means it cannot be awarded.
Anxiety, depression is the serious concern but if it is occurring due to breach of contract then
4

person is not liable to get compensation for the same. As in the case of Bingham LJ in Watts vs
Morrow 1991 authorities have clearly stated that breach of contract cannot be awarded.
Anticipatory breach
When injured party unable to perform duty then it not a breach and have a right to retain
other party obligations.
Termination of breach
When one party is unable to fulfill his duty then other party is able to terminate contract
due to defective performance of another party.
Issues impacting contract law development
When a business operates they require contract at each and every stage to hire employees
or to pay them all need contract for smooth working of a business. A person need get eligible for
entering into a contract and need age of 18 or more for an agreement.. Then it will become a
problem for one company to maintain provide important information about business like
customer's data then other party is able to get information impact on business.
Hyperbole
Parties need to take care while providing information about their business if false
information or illegal products are become part of contract then chances invalid contract
increases.
Advice
Business need to get proper advice from their lawyer before signing a contract. Because a
lawyer is able to provide proper an fair information about agreement.
How a contract is formed and its implication to other parties
Contract is formed when parties are ready to fulfill all their promises involved in a
contract. Contract is formed by court of law with set of several rules. It is an legal framework
which all parties involved in a contract need to follow legally and accept all terms related to the
contract. Contract is formed to protect business and to know rights and responsibilities of parties
involved in agreement. Contract play an important role while changing goods and services or
money. Each party need to promise to perform their duty. Contract help to reduce disputes in an
organization.
Legal implication

To enter in an contract one party need to offer another party. And for forming a contract
both need to enter into a legal binding. Legal implication that effect contract are as follows :
Breach of contract
Each party in an contract need to perform their actions. And if one party is unable to fulfil
duty then other party has right to make a legal documentation against another party. Party has a
right to get compensation for their damages 5. Other party need to pay all dues. Breach in a
contract from one person effects mental health of another party as they working in a same
business.
Level of breach
If another party in a contract breach then person need to analyze level of breach from the
party. Sue the party to recover damages due to breach of contract.
Conditions
Some conditions also effects contract, it a person in a contract is unable to perform his
duty then it is not always consider as a breach of contract it depends on condition of party to not
pay for their rights.
Statute of frauds
A person signs an agreement and those contract which are formed against ownership of
land are comes under statute of fraud. Parties need to develop an agreement in writing.
Identify and evaluate obligations of parties to contracts and legal consequences of any breaches
Breaches of contract is affecting the life of any individual and so it will also have the
legal consequences of breaches as well. There are certain obligations which will have the have to
be fulfilled while dong the contract otherwise it will have impact on contract. Valid contract need
to have the all the documents and also the contract must include everything like the products and
services and money. In the case of contract it would end up to the contractual obligations which
has been signed by the both the parties. These obligations are lending on the subject and the type
of contract. Contractual obligation is the agreement signed by both parties, for the failure of
contract and for the manages which have to be paid by both the parties and in what ratio or
amount.
5 Halson, R., 2019. The recovery of damages for non-pecuniary loss in contract and tort a
unified approach. In Research Handbook on Remedies in Private Law. Edward Elgar
Publishing.

There are Various types of damages which are to be compensated in the case of breach of
contract like the compensatory damages, restitution and liquidated damages as well. These all
will have certain rule and regulations which need to be followed by both the parties. In the
compensation damages parties have to pay the compensations for the breach of contract. In the
liquidated damages the parties have to pay the amount for the breach but it cannot be forecast
and also it cannot be estimated by anyone. So the damages are decided by both the parties, and
they have to pay the damages as well.
There are severe damages because of the breach of contract and so the mental state of the
individual is affected. When the breach has taken place they have to deal with the external
factors which are efficient them and so deal with the internal factors which had affected them.
When the breach is done another party which is suffering due to us. So the parties have to pay
the damages of the also incurred and also the compensation is given to them. But the money
related matters will be solved by breach of contract but mental stress and trauma will not be
solved by the compensatory or any other type of damages.
Legal arguments are the format which is prescribed by the court which will include the
statutes, regulations and case precedent as well 6. These arguments are done in the court on the
basis of the breach of contract and so these arguments and questions asked in court regarding the
case will have the effect on the mental health of individual. Each type of arguments in court need
to have the proof for each argument. The arguments are done on the basis of the facts and figures
which are provided by both the parties. Data in these will have the impact on the decision of case
and lawyers can use the laws and sections for providing the clients innocent. There are many
types of legal arguments which will include the text, indent, precedent, tradition and policy.
These arguments have different source and sources can be any things which is relevant to the
breach of contract.
Every argument has different structure and different strengths and weakness which can be
used by the other party in the court proceeding, and they can take the advantage of arguments in
the easily. In the legal text it will include the statutes, regulations and ordinances which can be
used by the individual for working in the effective way. Certain questions are asked the accused
in court proceeding and these all will have impact on the mental state of individual. The person
6 Gupta, A., Goyal, N. and Singh, K., 2020. Medical professionals and patients: The legal
relationship in India. Medical Journal of Dr. DY Patil Vidyapeeth. 13(1). p.11.

can lose the confidence, and he would not be able to complete the work in the successful way.
Life of the individual person is affected and so the family is also affected because they will be
affected by the health
So people can use the legal arguments for making the case in their favour but even if the
person has fought case and won the case but it will have the impact on the health and mental
health of individual. These arguments will have certain impact on health of individual and so the
laws and certain conditions are affected.
Use the primary and secondary sources and give advice
The breach of contract will have the impact on the individuals and also on the families of
individual. So people could use the take the advantages of laws and file the complaints against
the damages and receive the damages against the breach of contract. People can use the acts for
recovering the damages 7. Like the bail act 1976, courts act 2003, crime and consider act 1998,
magistrate courts act 1980 and public order act 1980
as per these acts the party has the right to demand the compensations regarding the
damages which are done by the breach of contract. These acts also have certain rules and
regulations which will provide the knowledge regarding the acts and the sections and principles
which are followed in acts. These acts have the rules regarding the compensation which will be
provided to party in the case of the breach of contract. But it will not have rules regarding
providing them mental support for overcoming them from the stress and trauma. Many people
have received the compensation, but they would overcome the trauma in the whole life and
family is also suffering due to these action.
So families and friends can hep individual to overcome the stress, but the individual must
have the hope and confidence which will help him to overcome the stress. These will hep, the
individual to work in the effective way and solve the problems which will have the effect on the
health. Heath is must for any individual and also for the family so the contract must not be so
important for anyone that the individual person life is suffering due to these. Every individual
will need mental support and the therapies which will help them to overcome the stress. So
people are following the new strategies which will help them to work in the proper way and
enjoy the life in the effective way
7 Zhang, M., 2019. Breach of Contracts and Remedies. In Chinese Contract Law-Theory &
Practice (pp. 345-380). Brill Nijhoff.

To communicate and present knowledge and understanding
In the breach of contracts people are facing mental stress and also they are dealing with
many problems which is affecting them. So friends and families, which will help individual to
overcome the mental stress by the way of communicating with them in the effective way.
Effective communication will help individual to work in the effective way and face the society.
The present essay articluates that in case of mental suffering due to breach of contract
the following damages can be allowed to a person. Thus, these as are-
Punitive or exemplary damages-
` The punitive damages can be termed out as exempalary damages and these are awarded
only where there has been malicious oppressive and high handed misconduct that may offends
the court sense of decency 8. In order to recover punitive damages for interntional infliction of
emotional distress the plantiff must show the defendents engaged in extreme and outrageous
conduct that intentionally caused due to servere emotional distress to plaintiff.
Aggrevated damages-
At a time when court awarded aggravated damages, this is not punishing the defendant
but compensating the plantiff for causing additional harm that cause the plantiff feelings by
reprehensible and outrageiours conduct on the part of defendant. This kind of the damages are
taken as award.
General damages for mental stress-
As per this, it can ve contexed that general damages for the mental distress are quite
similar to the aggravated damages that seek to compensate for non pecuniary loss rather than to
punsih the defendant. Henceforth, there is good argument that these two forms of the damages
are distinct as they measure the defendant conduct from the different perception at different
period of time.
Breach is contract is giving the mental stress and trauma to individual and in these only
effective communication will help individual to share their thoughts and problems about they are
facing. So communication skills would change the effective working. Communication is done in
many ways. Like it can be done by the way of the written, verbal and visual and many more.
After the breach people would feel shy in communicating with each other. Some people have to
8 Králíčková, Z., 2019. Children, parents, parental resposibility and the civil liability of
other people. The Lawyer Quarterly. 9(2).

gather the confidence of communicating with anyone. People can communicate in the effective
way by the way of the active listening and effective body language will help individual. These all
will build the confidence of individual and so it will help them to work in effective way.
Person which are trying to communicate can gain the knowledge and under and the
mental state of individual. So people will try to gain the knowledge regarding the breach. So
people will feel comfortable while communicating with each other. Knowledge regarding the
communication skills and understanding the mental state of individual is analysed by the doctors.
So need to consult the doctors to overcome the stress and also people will lose the decision-
making power because they are not able to communicate and also they do not have confidence.
In these type of cases people will visit the doctors and try to encourage them and motivate them
to make the right decisions
CONCLUSION
From the above report it is concluded that the breach of contract is having the impact on
the mental health of individual. Many people are investing huge amount in the contract and in
the case of breach of contracts the people will be facing certain problems and which have effect
on the health of individual. Like in the breach of contract people are getting the compensation for
damages and in some case people have to fight for the damages and for receiving the
compensation. These all have high impact on the health of individual and mental health of
individual and family as well. So the people can use the laws for receiving compensation, but
they would need support of friends and families which will help them to overcome the stress and
the trauma faced by them. The report is providing the knowledge regarding the damages and
mental health of the people faced by them.

BIBLIOGRAPHY
Books and journals
Rizzi, M., 2019. Liability of Media Companies for Mental Harm Suffered by Journalists
Reporting on Traumatic Events: YZ (a Pseudonym) V the Age Company Ltd [2019] VCC
148. Marco Rizzi,'Liability of media companies for mental harm suffered by journalists
reporting on traumatic events: YZ (a pseudonym) v The Age Company Ltd [2019] VCC.
148(23). p.3.
Harder, S., 2019. Australian perspectives on contract damages. In Research Handbook on
Remedies in Private Law. Edward Elgar Publishing.
Dodeen, M.M., 2019. Compensability of Moral Damage in Islamic Contract Law: A
Comparative Analysis of the Palestinian, Jordanian and Qatari Civil Codes. Arab Law
Quarterly. 1(aop). pp.1-24.
Berryman, J., 2019. Canadian perspectives on contract remedies. In Research Handbook on
Remedies in Private Law. Edward Elgar Publishing.
Halson, R., 2019. The recovery of damages for non-pecuniary loss in contract and tort a unified
approach. In Research Handbook on Remedies in Private Law. Edward Elgar Publishing.
Gupta, A., Goyal, N. and Singh, K., 2020. Medical professionals and patients: The legal
relationship in India. Medical Journal of Dr. DY Patil Vidyapeeth. 13(1). p.11.
Zhang, M., 2019. Breach of Contracts and Remedies. In Chinese Contract Law-Theory &
Practice (pp. 345-380). Brill Nijhoff.
Králíčková, Z., 2019. Children, parents, parental resposibility and the civil liability of other
people. The Lawyer Quarterly. 9(2).