Abstract: On the problem of whether the liability for breach of contract contains the compensation for moral damage, the theoretical circle of law and the judiciary circle still have disputes. With the development of economy, the protection of man' s spiritual benefits is thought highly of more and more, and providing judiciary remedy for the victim of breaching contract has become an objective trends. After investigating the legislative and judiciary practice of foreign countries in this respect, this paper concludes that the liability for breach of contract should include the compensation for moral damage. It also proposes the suggestions for constituting the compensation system of moral damage for breach of contract.