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CHINA AIRLINES LIMITED v. CA

This case has been cited 1 times or more.

2003-07-14
CARPIO, J.
The law distinguishes a contractual breach effected in good faith from one attended by bad faith.[64] Absent fraud or bad faith on defendant's part in breaching his contract, his liability for damages is limited to the natural and probable consequences of the breach of the obligation, which the parties had foreseen or could have reasonably foreseen.[65] In such a case, the liability would not include moral damages. For this reason, not every case of mental anguish, fright or serious anxiety calls for the award of moral damages.