out–of–pocket rule

out–of–pocket rule
out–of–pocket rule n: a measure of damages from fraud used in some jurisdictions that is based on the difference between the amount paid by the plaintiff and the market value of the thing paid for rather than the value attributed by the defendant compare benefit of the bargain

Merriam-Webster’s Dictionary of Law. . 1996.

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Look at other dictionaries:

  • out-of-pocket rule — n. The principle that the damages in a breach of contract or warranty case should constitute the difference between what was paid for the goods or services and what their actual value is. See also benefit of the bargain rule. Webster s New World… …   Law dictionary

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  • out-of-pocket loss — As measure of damages, is the difference between the value of what the purchaser parted with (i.e., the purchase price paid by him) and the value of what he has received (i.e., the actual market value of the goods). Otte v. Ron Tonkin Chevrolet… …   Black's law dictionary

  • out-of-pocket loss rule — See out of pocket loss …   Black's law dictionary

  • benefit-of-the-bargain rule — n. 1 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. 2 In cases involving fraud …   Law dictionary

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