MBE Rules · Remedies
Emotional Distress in Contract
ED damages in contract
The rule
Contract damages exclude emotional distress except where the contract's subject matter directly concerns personal welfare (funerals, personal safety) or the breach is accompanied by an independent tort.
In plain English
In contract law, damages for emotional distress are generally not recoverable. However, if the contract relates to personal welfare, such as funerals or safety, or if the breach involves an independent tort, emotional distress damages may be awarded.
Worked example
A family hires a funeral home to handle their deceased relative's arrangements. The funeral home fails to provide the services as promised, causing the family significant emotional distress. Since the contract pertains to personal welfare, the family can recover damages for their emotional distress.
Memory hook
Emotional distress damages are a no-go, unless it's about personal welfare or a tort's in tow.
The trap
Exams may present scenarios where emotional distress seems justified, but students often overlook whether the contract is about personal welfare or if there's an accompanying tort.
How examiners test it
Questions typically involve fact patterns where a breach of contract leads to emotional distress, requiring students to identify if the exception applies based on the contract's subject matter.
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