BENEFIT-OF-THE-BARGAIN RULE

benefit-of-the-bargain rule. 1. The principle that a party who breaches a contract must pay the aggrieved party an amount that puts that person in the same financial position that would have resulted if the contract had been fully performed. [Cases: Damages  117.] 2. The principle that a defrauded buyer may recover from the seller as damages the difference between the value of the property as represented and the actual value received. — Also termed benefit-of-bargain rule. Cf. OUT-OF-POCKET RULE. [Cases: Fraud  59(2).] [Blacks Law 8th]