Diminution in Value Law & Legal Definition
Diminution in value generally refers to a reduction in the worth of something caused by an action of a third party or entity. In the context of contract law, it refers to a breach of contract causing the decrease in value of property due to the failure to construct something exactly as specified in the contract. Diminution of value studies are often used in relation to real estate valuations in situations such as studies of the impact of locating an aiport near residences. Real estate valuations and diminution in value studies are meaningful only if based upon market data.
The diminution in value theory is currently gaining strength as a major consumer concern. In tort law involving auto accidents, this theory holds that damage to an auto results in a monetary loss in the market value even though the damage has been properly repaired.
Diminution in Value (DV) is the monetary difference between:
- A car's pre-accident value
- A car's value after an accident and repair
Legal Definitions
Search Definitions
Get a Term Defined
- Request a legal definition! Submit a term you need defined.
- » Request Legal Definition
Submit a Definition
- Submit a Definition Help us build our database. Free listings for attorneys.
- » Submit a Definition
Help Build USLegal
- Join our Team and help build USLegal. Many opportunities for participation so Join our Network.
Build USLegal
Read a Law Digest
- Need to read the law or find an answer to a legal question? Visit our Law Digest for the largest selection of law digests and answers available.
Go to Law Digest
Form Packages
- Select from our most popular legal form packages.
- » Bankruptcy
- » Contract for Deed
- » Divorce
- » Employment Packages
- » Home Sales
- » Incorporation
- » LLC Formation
- » Landlord Tenant
- » Mutual Wills
- » Name Change
- » Personal Planning
- » Partnerships
- » View All Packages
Legal Life
- Organize your legal life today! View our free online guide to creating a Life Documents File and related products.
- » Life Documents File
- » Personal Planning Package
- » Life Documents Packages
- » New Parents
- » Newlyweds
- » Baby Boomers
- » Military
- » Other
Form Drafting
- Can′t find the form you need, or need a form we offer revised for your situation? Submit your request and our attorneys will review the request and let you know if the form can be provided.
Submit a drafting request...
