The measure of monetary damages for breach of a real estate contract is computed as follows:

Question

Quizplus · Accepted Answer

The measure of monetary damages for breach of a real estate contract is usually computed as the difference between the fair market value of the property at the time of the breach and the contract price. This is known as the benefit-of-the-bargain rule. It reflects the difference between what the injured party expected to receive under the contract and what they actually received. Option A is incorrect because it would provide a windfall to the injured party by awarding them the full purchase or sale price. Option C is incorrect because it would not reflect the actual loss suffered by the injured party at the time of the breach. Option D is also incorrect because it only reimburses the injured party for expenses incurred, rather than compensating them for their actual loss.

The Measure of Monetary Damages for Breach of a Real