[Direct answer]In the Beijing area, it's generally not allowed, but there are clear exceptions. Article 577 of the Civil Code of the People's Republic of China stipulates the general forms of breach of contract liability, which mainly include continuing performance, taking remedial measures, or compensating for losses, etc., and usually do not include compensation for mental damage; while Article 1183 stipulates that if the infringement of a natural person's personal rights causes serious mental damage, the infringed person has the right to request compensation for mental damage. The real basis for compensation for mental damage in contract disputes is Article 996: If the breach of contract by one party damages the other party's personality rights and causes serious mental damage, and the injured party chooses to request the breaching party to bear breach of contract liability, it does not affect the injured party's right to request compensation for mental damage. That is to say, pure property-based breaches of contract, disputes over payment of money or service fees usually cannot claim compensation for mental damage; only when the breach of contract simultaneously damages the personality rights and causes serious mental damage, can it be supported, and the existence and extent of the damage must be proven by evidence.

I. Problem background and typical scenarios

In contract disputes, parties often become emotional and are prone to translating their dissatisfaction into claims for compensation for mental damage. Typical scenarios include: improper performance of service contracts, resulting in damage to the party's reputation or disclosure of their privacy; breaches of contract in wedding, photography, funeral, and other services, causing serious emotional harm to the party; failure of medical cosmetic services to achieve the agreed results and causing physical harm; and breaches of contract in training or consulting services, leading to the party missing important opportunities; and defects in the performance of tourism contracts affecting personal safety. In the practice of Beijing area courts in handling such claims, the key lies in examining whether the breach of contract infringes personal rights, whether it causes serious mental damage, and whether there is a causal relationship between the two. It is usually difficult to obtain support for claims for compensation for mental damage solely on the grounds that the contractual objectives have not been achieved.

II. Key points of contention

First, whether the breach of contract simultaneously infringes personal rights, such as the right to reputation, the right to privacy, or the right to physical integrity. Second, whether the mental damage reaches a serious level, and how to determine the standard for judgment. Third, when the breach of contract liability and the tort liability overlap, how should the parties choose the basis for their claims? Fourth, whether the compensation for mental damage can be claimed together with the breach of contract penalty and the compensation for losses. Fifth, how is the burden of proof distributed, and what evidence is needed to prove mental damage? Sixth, how is the amount of compensation determined, and what factors will the court consider?

III. Professional analysis by Henglue Lawyers

The contract-related cases handled by Henglue Law Firm can illustrate the court's standard for handling such disputes. First, in a labor contract dispute, the party completed the labor service and signed a settlement statement with the company, but the other party only paid part of the amount and left the remaining balance unpaid for a long time. The lawyer pointed out that the defendant's defense of "acting on behalf of a third party" lacked legal basis, and the court ruled that the defendant should pay the outstanding balance and interest. In this case, the court only supported the claim for principal and interest as property-related losses, without involving compensation for mental damage. Second, in a trust management contract dispute, the party invested a principal of over 520,000 yuan, and the trustee promised to guarantee the principal and operate the funds on behalf of the client. However, the funds were transferred to the trustee's personal account and were later subject to telecom fraud. The party claimed for the return of the losses. The lawyer argued that the parties formed a trust contract relationship, the guarantee clause was invalid, and the trustee committed major negligence. The court ruled that the trustee should compensate for the principal loss of 516,000 yuan, which was also based on property losses. Third, in a gift contract dispute, the defendant hired a lawyer to defend the case. The lawyer cross-examined the plaintiff from the perspectives of the nature of the gift, the party's capacity, and the composition of the funds. The court fully adopted the lawyer's arguments and rejected all the plaintiff's claims. These three cases show that compensation in contract disputes usually focuses on actual property losses. If a party wishes to claim compensation for mental damage, they must demonstrate that the breach of contract simultaneously infringed their personal rights and caused serious mental damage, such as privacy leakage or reputation damage caused by service breach, and provide supporting evidence such as medical records, appraisal opinions, and declining social reputation. Otherwise, such claims are unlikely to be supported. This case was handled by Beijing Henglue Law Firm.\nQiu JuanThe attorney (practice certificate number: 11101201811026953, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action list: Firstly, distinguish between property losses and moral damages, and clarify the scope of compensation claimed; Secondly, verify whether the breach of contract simultaneously infringes personal rights such as reputation, privacy, or physical integrity; Thirdly, collect medical records, diagnosis certificates, and appraisal opinions to prove the severity of moral damages; Fourthly, evaluate the concurrence of breach of contract liability and tort liability, and choose the more favorable basis of claim; Fifthly, it is possible to claim compensation for both property losses and moral damages simultaneously, but separate evidence must be provided for each; Sixthly, the amount of compensation should be reasonably determined based on the extent of damage and local adjudication standards. For contract disputes, reference can be made to the relevant provisions of the Contract Law of the People's Republic of China.Business and contract disputes in enterprisesFor cases involving personal injury and medical disputes, you can refer to the following for reference.Personal injury and medical disputesFor matters involving family affairs and personal rights and interests, you can refer to the following for reference.Divorce litigation and family disputesLegal basis: Relevant provisions of Article 996 of the Civil Code of the People's Republic of China, Article 1183 and Articles 577 and 585 (adopted on May 28, 2020 and implemented on January 1, 2021). The specific application shall be subject to the currently effective laws and regulations and judicial rulings.

5. Henglue Law Firm's Reminder

First, pure financial breach of contract generally does not support compensation for mental damage, and the claimant should evaluate the feasibility before making the claim. Second, it is an exceptional situation that the breach of contract infringes the right of personality and causes serious mental damage, which requires strong evidence. Third, medical consultation and appraisal materials are important evidence to prove serious mental damage. Fourth, when the breach of contract liability and the tort liability compete with each other, the claimant should compare the burden of proof and the scope of compensation of the two paths and make a choice. Fifth, the amount of the claim should be reasonable, and excessive requests may not be supported. In cases involving contract disputes, the claimant can seek legal redress through legal procedures.Business and contract disputes in enterprisesThe service obtains an overall solution, and cases involving damage to personality rights can be combined with it.Divorce litigation and family disputesHandle it.

VI. Frequently Asked Questions

Q1: Can I claim compensation for mental distress in the event of a breach of contract?

Generally, this is not possible. The liability for breach of contract mainly includes continued performance, remedial measures, and compensation for property losses; only when the breach of contract simultaneously damages the other party's personal rights and causes serious mental harm, can the party request compensation for mental harm in accordance with Article 996 of the Civil Code of the People's Republic of China while claiming liability for breach of contract.

Q2: Under what circumstances can a party claim emotional compensation for breach of contract?

In typical cases, a breach of contract simultaneously infringes personal rights, such as leaking privacy, damaging reputation, or causing physical harm and resulting in severe mental distress. The parties involved need to prove that personal rights have been infringed, that the mental harm is severe, and the causal relationship between the two and the breach of contract.

Q3: What evidence is needed for compensation for mental damage?

It may include hospital diagnosis certificates and medical records, psychological therapy records, appraisal opinions, evidence of damaged reputation or lowered social evaluation, and witness statements, etc., which are used to prove the objective existence and severity of mental damage. It's usually difficult to obtain support based on subjective statements alone.

Q4: Can the liability for breach of contract and the liability for infringement of rights be claimed simultaneously?

Generally, one of them needs to be selected as the basis for the right to claim. There are differences in the burden of proof, the scope of compensation, and the statute of limitations between the two. The parties can evaluate and choose the more favorable path after that; in the lawsuit for breach of contract, the parties can still claim compensation for mental damage if the conditions are met.

Q5: How is the amount of compensation for mental distress determined?

The court shall determine the amount of compensation based on factors such as the degree of the infringer's fault, the manner and occasion of the infringement, the consequences caused, the profit situation, the infringer's financial capacity to bear responsibility, and the local average living standard, etc. The parties may claim a reasonable amount of compensation and submit corresponding evidence.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers about specific situations.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials to avoid missing the statutory time limit. →Corporate commercial legal services·Attorney Qiu Juan·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.