Loss-of-Bargain Rule Law and Legal Definition

Loss of bargain rule is a principle that damages for a breach of a contract should put the injured party in the position it would have been in, if both parties had performed their contractual duties. The plaintiff is entitled to recover the difference between the actual value of what s/he received and the value s/he would have received had the property been as represented.This rule is not followed by all the U.S.states.

The plaintiffs under the "loss of bargain rule" have the duty of proving their damages with reasonable certainty; in other words, their proof of damages must afford a reasonable basis from which the fact finder may compute damages. [Kent v. Flickinger, 453 F.2d 955 (10th Cir. Colo. 1972)]