Benefit-of-the-bargain rule financial definition of benefit-of-the-bargain rule
A rule of damages that says if a person has been defrauded, that person may recover the difference between the actual value of the property and the value the property would have if it had been as represented.
References in periodicals archive
Such damages would aim to compensate the investor under one of two theories: the out-of-pocket rule or the benefit-of-the-bargain rule.
The benefit-of-the-bargain rule would similarly seek to place the client in the position she would have occupied had the wrongful conduct not taken place, but it does so by taking prevailing market conditions into account.
Depending on the applicable state law, two theories have been used in assessing fraud damages: the benefit-of-the-bargain rule
and the out-of-pocket-loss rule.