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United States Leading Case expectation damages

Peevyhouse v Garland Coal & Mining Co

382 P.2d 109 (Okla. 1962)
JurisdictionUnited States
CourtOklahoma Supreme Court
Year1962
StatusBinding authority

Summary

Where cost of contractual performance is grossly disproportionate to benefit conferred, diminution in value is the proper measure of damages rather than cost of performance.

Key Principle

Where the cost of performance of a contractual obligation is grossly disproportionate to the benefit, diminution in value rather than cost of performance is the proper measure of damages.

Area of Law

contract

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On termination of a building contract, a builder may recover reasonable value of work done in restitution, subject to the contract price as a ceiling where work was performed under a valid contract.

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Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85

High Court of Australia examined the principles governing rectification of written contracts for common intention and unilateral mistake in equity.

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