Contract Law Report: English Court Guidance on Non-Pecuniary Damages

This report provides an overview of non-pecuniary damages within the context of contract law, focusing on the guidance provided by English courts. The report defines non-pecuniary losses, which include anxiety, distress, and loss of reputation, and explains how these differ from pecuniary losses. It examines the elements of a contract, including offer, acceptance, intent, and consideration, and discusses the role of common law, state statutory law, and private law in governing contracts. The report also highlights the situations where non-pecuniary damages may be awarded, such as when losses result from physical inconvenience or when the contract's purpose was to provide enjoyment and freedom from distress. Furthermore, it explores the court's approach to assessing these damages, including the diminution in value approach and the distinction between conceptual and personal approaches, and highlights the importance of understanding the legal framework for contract law in the UK. The report emphasizes that the English courts provide clear guidance regarding non-pecuniary losses, which are not always easily quantifiable, and the report covers the legal basis for claiming such damages, including the concept of breach of contract and the remedies available to the claimant.

Contract law
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task – English court have given a clear guidance in relation to claiming damage for non
pecuniary losses contract law.......................................................................................................3
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
In UK there are different laws which is followed. Contract law is basically used in business
where in party makes promise to other in return of consideration. In this first they make an offer
then acceptance and legal binding. Moreover, there can be certain damage as well which occurs
due to breach of law. They are either pecuniary or non pecuniary. So, person has right to claim
for it (Beale, Fauvarque-Cosson and Vogenauer, 2019)
This report will describe about whether guidance of English court regarding claim of non
pecuniary damage in contract law.
MAIN BODY
Task – English court have given a clear guidance in relation to claiming damage for non
pecuniary losses contract law
Doctrine can be defined as a set of rules, framework, test, procedural steps that are
established through precedent in common law which further helps in determining judgements in
a given legal case (Knapp, Crystal and Prince, 2019). It occurs when a judge makes a ruling
where a process is outlined and applied and is allowed to be equally applied to other cases. It is
important to focus on all kinds of obligations when it comes to execution of contracts. Contracts
a kind of promises that helps an individual to enhance their satisfaction that law will be enforced.
Contract law is generally governed by state of common law. Overall contract law is sale
throughout the country but elements of contract law might vary sate to sate. A basic contract law
consists of four main elements: first element is the offer which focuses on what an individual is
going to do. Second is acceptance of offer which focuses on the fact that another individual
accepts the offer which is being provided to them. Third is intent i.e. both the parties should have
an intention to enter into a legally binding agreement and both of them agrees to all kinds of
terms and conditions of the contract (Ben-Shahar and Porat, 2019). Last element is
considerations which focuses on something valuable like product or service i.e. in exchange of
work something valuable is being provided or offered to the individuals. All the four elements
together develop contract. Other than these elements there are two important components of
contract without which any contract is incomplete. First is terms and conditions without which
contract does not have any kind of value. If any individual breeches the contract then it also
includes consequences that, individual will suffer from. Second component is capacity which
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focus on time period of the contract, things upon which contract will focus on and other related
resources.
Contract is mainly governed by common law, state statutory and private law. Private law
includes all kinds of terms and conditions of agreement between the parties who are involved
within the contract. However private law might get override by the rules and regulations of state
law. State statutory laws are required to be included within the contract as it includes state of
fraud. Such kind of contract requires written formalities co that contract can be enforced legally
without any issues (de Weijs, Jonkers and Malakotipour, 2019). Whenever a contract is been
made all kinds of common laws are outlined within it so that in case of contract breech
punishment can be defined. When a contract is being made there are many kinds of situations
that are included with a contract, some of these situations are not defined in contract or are not
defined in terms of money. Such kind of damages are known as non- pecuniary. These non-
pecuniary losses are also included in many contracts so that in case of damage of loss claimant
can be awarded with some kind of damage award (Ben-Shahar and Porat, 2019)
In every nation there are different types of laws and regulations which are followed.
These laws are been formed by government. Along with it, the laws are applied in context to its
situation. In that there are various principles and guidelines which needs to be followed. In UK,
English court plays a significant role in maintaining the legal system within nation. The court
ensure that laws are properly been followed. Besides that, court also have right to interrupt and
issue an order against that law. Similarly, in recent times English court has given guidance in
regard with claim of damage for non pecuniary losses in contract law.
Non-pecuniary losses inclusive of anxiety, distress, loss of reputation, distress and others. These
kind of the losses do not get compensated by the damages under the contract act. However, they
can be compensated on the following ground such as-:
1. If the losses resulted from physical inconvenience that caused due to breach of contract.
The whole purpose of the contract was relate with to provide the enjoyment and freedom of
distress etc. (Knapp, Crystal and Prince, 2019)
Hence, this can be stated that damages for disappointment and distress cannot be
recoverable unless they proceed from physical convenience that caused by the breach or unless
the contract has clearly stated that this is made on the object of providing relaxation from
molestation. In order to gain recovery of losses due to non-pecuniary losses the English courts
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are adopt a diminution in value that is approach in which victim lost irrespective of the use to
which damages will be put. It is that approach in which two variants are dependent upon the
victims in which loss is valued subjectively or objectively. In this the former used to be labelled
as conceptual approach and latter a personal one. Thus, the variation among the conceptual and
personal approach is mainly marked at the time when the cases if unconscious victim is
considered. If the conceptual approach is taken then it allows the full recovery. If the personal
approach is taken then victim would recover nothing if he had no awareness of his conditions.
Hence, this can be stated that non-pecuniary damages are not as discernible and quantifiable. It
leads to things such as pain, suffering, loss of quality of life and emotional distress etc. (Leng
and Wei, 2017).
Also, this can be stated that award of indemnity for non-pecuniary losses is that there is
no persuasive principle for such awards. In the case, if the claimant’s loss is financial than there
is no conceptual as opposed to arithmetical, trouble in converting this loss into a lump sum
award of damages. In addition to this, Non-pecuniary losses generally consider pain,
suffering ,loss of pleasantness and mental distress. In this case, Compensatory damages may be
direct contrast with damages that are not strictly compensatory. For example, If the claimant may
have suffered damage but cannot prove real loss or he has suffered no loss but the breach of
contract or duty consequence in a benefit to the wrongdoer. Henceforth, this can be said that the
damages called as non-pecuniary are personal injury compensations that mainly awarded to
claimants. It is called out as sum of money that mainly given to pacify the inflictions experiences
by the accident victims and their families. Therefore these kinds of losses under this category can
be termed out as intangible, such as loss of enjoyment, companionship, pain and suffering.
Therefore, the main purpose of the non-pecuniary damages is to make up a plaintiff’s pain,
suffering and loss of enjoyment of life (Oman, 2017)
Generally, non pecuniary damages are those which are no quantifiable and discernable.
This means the loss can not be counted in terms of monetary value. Besides that, these are those
losses that include pain, suffering, mental illness, distress, etc. along with it, these damages
highly impact on quality of life of people. A contract law in UK is a legal binding either in
written or oral between two parties to fulfil a promise. The contract is made between two parties
to fulfil promise in in return for consideration. Basically, there are 4 crucial element in this law
that are acceptance, consideration, offer and legal relations. Now, as per guidance by English
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court it has been stated that there are different things which needs to be considered in it. Now, in
terms of pain and suffering there will be no benefit or damage awarded to victim. They both
form a part of breach of contract. Thus, such claims need to be brought to compensate if there is
any inter alia in effects of body. However, in physical discomfort there is need to compensation
in contract law. Moreover, for mental illness as non pecuniary damage as per section 119 (4)
guidelines the damage compensation needs to be paid as it was in case of Vento vs Chief
constable of west yorkshire police. So, this alone damage is considered as compensation in
contract law (Pargendler, 2018)
Yes, agree with statement and also understand that English court always provide the clear
statement or guidance related the contract law. It might be applying in any damage for non-
pecuniary losses. If it has found the losses or damage. In order to claim of another one when they
can fix them. It can be possible through contract law which providing the legal right to protect or
secure themselves (Kryla-Cudna, 2018). Sometimes, it also relate to the contractual relation
which giving an idea about the legal policies and procedures. Government always support for
giving right where they can claim if seriously find out any damage.
Furthermore, contractual relation are considered between individuals, therefore it is in the
form of civil law. Sometimes, it is dominant source of contract low whereby decision of court
from the part of contract law. In this way, it can be identified the primary aim of contract law
when provide the effective legal framework for contracting for different parties (Visscher and
Karapanou, 2015). In order to resolve their issues, disputed and regulate their contractual
obligation
As per discussion, legal authorities are supporting for consider the Contract law which basically
fascinating as people will have unknowingly formed as legal binding agreement at some point. It
is the simplest way to described as legal binding which based on the written as well as oral
agreement (Visscher and Karapanou, 2015). In order to exchange the combination of goods,
money, property and services. In another way, it can be said that common misconception that
contract between two different parties. If in case contract is based on the written form so that it
require some necessary information and record in proper documentation. In some situation, the
damage party is directly used their own right through contract regulation and also communicate
with other legalize authority (Visscher and Karapanou, 2015). It provide the option where they
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will be claiming other party but require some relevant information or data. A Contract may be
contained the relevant information in order to follow the step by step procedures (Potter, 2017)
A contract is unique concept that unless certain exception that would be applied by legal parties.
In some cases, various parties are free to agree on the particular term and condition. it is also
known as freedom of contract. It is unknowingly that enter thousands of contract per years. For
Example- when person buying groceries from super market. If they have entered into particular
contract for exchange of money in return for goods. Every individual needs to understand the
main concept of contract law and how they will be applied on right time, right place. Each and
every thing depend upon the contract where both parties are integrated with other. It also
mention the each detail if in case any damage found who will repair. These rules and regulation
are made by government to provide the authority where they can use them (Savelyev, 2017)
Thus, we agree with this statement as it is necessary to distinguish non pecuniary damage
and then accordingly doing claim for it. Besides this, it allows in analysing damage on victim
mental health. Usually, in contract law if any of four elements are not followed then it can lead to
breach of contract. Furthermore, sometimes the claim made in terms of damage is too high which
is not possible to be fulfilled. Along with it, in non pecuniary damage claims made are false as
well. In this way, most victim are able to get success in their claims. Also, it has been found that
in many cases the claim made is high as compared to damage. So, this lead to creating a fake
situation where that claim is not possible to be given. However, guidance is required to identify
whether there is breach of contract or not. This has to be proven with evidence. Moreover, if
there is no legal obligation mentioned in contract law then it becomes difficult to claim for non
pecuniary damage (Stewart, Swain and Fairweather, 2019)
Another reason for agree with this statement is that having a clear guidance allow in finding out
and analyzing to how much extend damage is been done. However, pecuniary damage can not be
measured in terms of monetary but on basis of effect, harm on body it becomes easy to analyse it
properly. As in order of court on distress and discomfort it is said not be pay any kind of claim.
But in contrary in mental illness damage claim can be made that to how much extent person has
suffered mentally. There is need to specify that what must be done in case of other non pecuniary
damage. However, sometimes claim is made in context of tort as well. It is because there is little
difference between contract and tort law. In that case as well there are non pecuniary damage
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occurred. This may be due to breach of contract but it does referred as tort. So, here different
guidance is given by court in regard to this. There is change in claim been made and
compensation done. Thus, from guidance it becomes easy to differentiate that in which non
pecuniary damage claim is valid and in which it is not. For that there are certain criteria which is
followed in it such as breach of contract, what type of damage is done, etc with that it becomes
easy to analyse case and evidence on it. Besides that, in some cases the claim needs to be made
so that it becomes easy to find where breach of contract occurred. Other than this, it is necessary
to identify the basis of which claim is been done of non pecuniary damage. So, it plays important
role as it show the grounds of claim been made. By that the evidence can be gathered and
changes are made in it. Usually, there are three basis on which compensation has to be made
They are as follows (Knapp, Crystal and Prince, 2019)
Personal- here, damage done on human body can be valued independently on his feelings. So,
loss of happiness is observed in this apart from amenities.
Conceptual- this is second base on which compensation is made. Here, individual happiness is
considered as value of asset so sum of each part of body is calculated and accordingly
compensation is paid.
Functional – in this Court has no right to set value of loss of happiness of a person. This is
difference between the above two approaches.
Usually, these three approach are uses in claim of non pecuniary damage. They also act as basis
of which claim is done regarding breach of contract law. Also, this can be stated that award of
indemnity for non-pecuniary losses is that there is no persuasive principle for such awards. In the
case, if the claimant’s loss is financial than there is no conceptual as opposed to arithmetical,
trouble in converting this loss into a lump sum award of damages.
When a contract is being made there are many kinds of situations that are included with a
contract, some of these situations are not defined in contract or are not defined in terms of
money. Such kind of damages are known as non- pecuniary. These non- pecuniary losses are
also included in many contracts so that in case of damage of loss claimant can be awarded with
some kind of damage award.
Therefore, it is evaluated that guidance of English court has enabled in solving various cases of
non pecuniary damage and finding out validity of claim. This has made things easy to
differentiate as well on basis of damage done. Along with it, there are several case in which court
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guidance is useful. The parties involved in breach of contract law is identified and evidence is
gathered regarding it. Similarly, in guidance difference between tort and contract law is
mentioned as well along with its compensation to be paid. It haz made it easy to find out how
much damage is been done.
CONCLUSION
So, it can be summarized that guidance issued by English court in this regard is right as it clarify
What type of compensation has to be paid for what non pecuniary damage. Besides that it
becomes easy to identify how damaged has impacted on lifestyle of person. However, there are
some damage where claim made is false or more than harm done. In this the compensation need
not to be paid to party. The guidance provided by court shows what type of non pecuniary
damage is valid and not.
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REFERENCES
Books and journals
Beale, H., Fauvarque-Cosson, B. and Vogenauer, S., 2019. Cases, materials and text on contract
law. Bloomsbury Publishing.
BenShahar, O. and Porat, A., 2019. Personalizing mandatory rules in contract law. U. Chi. L.
Rev., 86, p.255.
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2019. Problems in contract law: Cases and
materials. Aspen Publishers.
Leng, J. and Wei, S., 2017. The Evolution of Contract Law in China: Convergence in Law But
Divergence in Enforcement?.
Oman, N., 2017. The Dignity of Commerce: Markets and the Moral Foundations of Contract
Law. University of Chicago Press.
Pargendler, M., 2018. The role of the state in contract law: The common-civil law divide. Yale J.
Int'l L., 43, p.143.
Potter, P.B., 2017. The economic contract law of China: Legitimation and contract autonomy in
the PRC. University of Washington Press.
Savelyev, A., 2017. Contract law 2.0:‘Smart’contracts as the beginning of the end of classic
contract law. Information & Communications Technology Law, 26(2), pp.116-134.
Smits, J.M. ed., 2017. Contract law: a comparative introduction. Edward Elgar Publishing.
Stewart, A., Swain, W. and Fairweather, K., 2019. Contract law: principles and context.
Cambridge University Press.
Knapp, C.L., Crystal, N.M. and Prince, H.G., 2019. Problems in contract law: Cases and
materials. Aspen Publishers.
Ben-Shahar, O. and Porat, A., 2019. Personalizing mandatory rules in contract law. U. Chi. L.
Rev. 86. p.255.
de Weijs, R.J., Jonkers, A. and Malakotipour, M., 2019. The Imminent Distortion of European
Insolvency Law: How the European Union Erodes the Basic Fabric of Private Law by
Allowing ‘Relative Priority’(RPR). Centre for the Study of European Contract Law
Working Paper, (2019-05).
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