§ 38. Mr. John Leeasked the Attorney-General if he will introduce legislation to amend the law of contract so as to permit the recovery of punitive damages.
§ The Attorney-GeneralThe question of punitive damages for breach of contract will be considered by the Law Commission in the course of its examination of the principles governing the award of damages in contract. Any decision as to whether legislation is required on this subject had better await the Commission's report.
§ Mr. LeeAlthough we accept that reasoned reply in this context, does not my right hon. and learned Friend agree that this is a desirable change and that there are many instances of breaches of of contract being accompanied by reprehensible conduct which would merit that kind of treatment?
§ The Attorney-GeneralI am not sure that I agree with that proposition. Normally, only compensation for damage suffered as a result of a breach of contract can be recovered in the courts and I am not sure that that is a bad rule. The Commission is investigating this matter.
§ Sir P. RawlinsonWhen does the right hon and learned Gentleman think that the Law Commission will be reporting on the law of contract? If it is to be much delayed, would he consider whether the Commission should be reinforced with extra members?
§ The Attorney-GeneralIt is pressing on with this mattter. This is an enormous subject for inquiry, as the right hon. and learned Gentleman knows. I do not think that it is shortage of staff which is causing the trouble. This is a highly complex subject.