Contract Remedies: Calculating Direct Expectation Damages with the Loss in Value Method

Expectation damages are intended to put a party who is injured by a breach of contract in as good a position as if the breaching party had fully performed the contract. Direct expectation damages, the main part of expectation damages. are usually calculated by comparing the expected value from the bargain to the actual performance by the breaching party. This video explains why the loss of value (or diminution of value) makes sense, given that contractual parties enter into bargains in order to make themselves better off. In other videos, I will also discuss alternative ways to calculate direct expectation damages and when to include indirect expectation damages in the total expectation damages calculation.