When measuring expectation damages, the courts have the choice between awarding the 'cost of cure' (the cost of buying substitute exact performance from another) or the 'diminution of value' (the market value of the performance the defendant undertook minus that actually given). The courts will always award the lower of the two measures.

Question

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Courts do not always award the lower measure; they consider factors like the intention of the parties, the reasonableness of the cost, and whether awarding the cost of cure would lead to economic waste.

When Measuring Expectation Damages, the Courts Have the Choice Between