ON 26 JULY 1909, the House of Lords delivered Addis v Gramophone Co Ltd  UKHL 1,  AC 488.
The decision is notable for establishing the general principle that damages for breach of contract do not cover injured feelings, mental anxiety, distress, anguish or frustration.
In cases of wrongful or unfair dismissal, damages are limited to lost earnings during the period of notice and are not to compensate the manner of dismissal; loss of reputation; difficulty of finding other employment; or injured feelings, mental anxiety, distress, anguish or frustration.
Damages for breach of contract are compensatory and the court may not award exemplary damages.
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