benefit-of-the-bargain rule legal definition
- In breach of contract cases,
the principle that the aggrieved party is entitled from the party who breached
the contract to everything that he would have received, including profits, if
the breach had not occurred.
In cases involving fraud or misrepresentation of the value of property, the
principle that the defrauded party is entitled to damages equal to the
difference between the misrepresented value and the lower amount that
represents the true value of the property. Also called loss of bargain. See
also out-of-pocket rule.