Sam contracts to buy an asset from Pam for $205,000, but six months later Pam says no to the
sale. The asset is now worth $325,000. What would the damages be under the benefit-of-bargain
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Sam and Pam are under an agreement for Sam to buy an asset from Pam for $205,000. After six
months Pam declares no to the sale. The value of asset now is $325,000. Under the benefit-of-
the-bargain theory the damages include not only the money invested but also other expenses, lost
profits, and decreased value of the investment.
The amount of damages would be the difference between the initial value of the amount agreed
to sale and the value as of now.
325,000 – 205,000=120,000
What five major factors are required for the benefit of-the-bargain computation?
The five major factors that are required for the benefit-of-the bargain computations are:
b) Damage period
c) Definition of profit
d) Growth rate
e) Discount rate