G.H.L. Fridman, in his book The Law of Contract in Canada, 2nd ed. (Toronto: Carswell, 1986), at p. 676 states: However, there may be situations in which some forms of mental distress can be brought within the doctrine [of Hadley v. Baxendale (1854), 9 Exch. 341, 156 E.R. 145]. A series of cases in England and Canada has recognized that, in appropriate circumstances, an allegation of mental upset, annoyance, grief, suffering or disturbance can be counted as damages flowing from a breach of contract, not too remote, and therefore compensable by an award of damages over and above any financial or other normally compensable loss incurred by the plaintiff. Succinctly put, it may be stated that what began as an exceptional allowance of damages for mental illness, or something similar, resulting from a breach of contract has now grown in scope and application, until the emergent doctrine may have undermined the principle in Addis v. Gramophone Co. with respect to the types of damages that can and cannot be granted in cases of breach of contract.
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