There are two ways of assessment available when the innocent party pursues a claim for loss of a bargain, asking to be placed in the same position he would have been had the contract been carried out: cost of cure (or in other words, the amount of money necessary to remedy the depression of value of the property) and difference in value. It’s up to the court’s discretion to decide which course to choose to assess the claim. There is however a set of rules that applies to both cases.
In the case of real estate contracts, the cost of cure method is generally used. In this case the vendor needs to correct the defects. However, in the case of the cost of cure being larger than the whole value of the property, the purchaser can only be awarded the difference in value.
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