When can you recover moral damages for breach of contract?

Answer

Moral damages are generally not recoverable for an ordinary breach of contract. Under Civil Code Article 2220 they may be awarded only where the defendant acted fraudulently or in bad faith (the article also allows them for wilful injury to property when justly due).

The plaintiff must plead and prove that aggravating state of mind — bad faith or fraud — not merely the breach. This is read with Article 2217 and Article 1170 on liability for fraud, negligence, or delay. No proof of pecuniary loss is required.

Sources & further reading

• Civil Code Art. 2220 — bad-faith breach
• Civil Code Art. 2217 — moral damages
• Full report: moral, exemplary & nominal damages

Cases on this topic

• Domingo Imperial v. Venancio Ziga
• Gashem Shookat Baksh v. Court of Appeals
• Hometown Development, Inc. v. Union Bank of the Philippines
• Joaquina Ventura v. Eusebio Bernabe
• Local Government of Quezon City v. Sy
• Lourdes Munsayac v. Benedicta De Lara
• Michael C. Guy v. Raffy Tulfo
• Occena v. Icamina

Related questions

• What are moral damages under Philippine law?
• What are exemplary damages under Philippine law?
• What are nominal damages under Philippine law?
• What is a quasi-delict, and how does it lead to damages?
• Moral vs. exemplary vs. nominal damages — what is the difference?