The law also permits recovery of damages for emotional distress resulting from the breach of a contract in limited circumstances. In Wharton v. Tom Harris Chevrolet Oldsmobile Cadillac Ltd. [2002] B.C.J. No. 233 (B.C.C.A.), the court set out these principles concerning when a court can award damages for mental distress resulting from the breach of a contract: (a) A contract-breaker is not in general liable for any distress, frustration, anxiety, displeasure, vexation, tension, or aggravation which the breach of contract may cause to the innocent party. (b) The rule is not absolute. Where a major or important part of the contract is to give pleasure, relaxation or peace of mind, damages will be awarded if the fruit of the contract is not provided or if the contrary result is instead procured. (c) In cases not falling within the "peace of mind" category, damages are recoverable for inconvenience and discomfort caused by the breach and the mental suffering directly related to that inconvenience and discomfort. However, the cause of the inconvenience or discomfort must be a sensory experience as opposed to mere disappointment that the contract has been broken. If those effects are foreseeably suffered during a period when defects are repaired, they sound in damages even though the cost of repairs is not recoverable as such.
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