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10 Cards in this Set
- Front
- Back
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Formula |
ED= LV+OL-CA-LA |
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Loss in Value (LV) |
The difference between what should of been received and what was received |
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Loss in Value for real property cases |
Loss in value is the difference between what should of been received and value of what was received (market value) |
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Loss in Value for breach of employment cases |
Loss in Value is the difference between what should of been received and value of what was received (cost to substitute employee) |
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Loss in Value for construction cases (default rule) |
Loss in Value is the difference between what should of been received and the cost of completion |
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Loss in Value for construction cases (Diminution in value) |
Loss in Value is the difference between what property would of been work if completed and what it is worth the way it was received |
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When do you calculate Diminution in value? |
if there has been substantial performance or the cost to complete or correct would create economic waste |
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Other Loss (OL) |
Incidental: additional costs incurred after a breach in a reasonable attempt to avoid loss Consequential: costs incurred (not normally part if the contract) that would not have been incurred but for the breach |
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Cost Avoided (CA) |
the amount saved by the non-breaching party because of not having to make expenses that otherwise would have been made to perform their duties under the contract |
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Loss Avoided (LA) |
the amount saved by the non-breaching party because they were able use some or all of the resources that otherwise would of been used to perform the duties under the contract |
