Loss Of Bargain Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Loss Of Bargain, written in plain English, along with examples of how it is used.
What is Loss Of Bargain?
(n) Loss of Bargain is the loss resulted out of the inability to do an act consequential to a non performance of duties or contract by another person or entity. Eg.. Failure to deliver a product due to the non-supply of raw materials by the sub-contractor.
History and Meaning of Loss of Bargain
Loss of Bargain is a legal term that refers to the loss incurred as a result of not being able to perform an act due to the failure of another party to perform their duties or obligations. In simpler terms, it is the opportunity lost because of the breach of a contract or the failure to deliver a promised performance.
The term has been used in various legal cases around the world, where parties breached a contract, leading to the loss of an opportunity. The concept of Loss of Bargain has evolved over time, with courts defining it as the loss of the possibility of a particular result as a consequence of the actions of the other party.
Examples of Loss of Bargain
A company had entered into a contract with a supplier to deliver raw materials on a specific date. The supplier failed to deliver on time, leading to the company losing a big contract due to not being able to fulfill their order.
A hotel received a request to hold a conference, and they accepted the booking. However, they later discovered that there was an error in their system, leading them to overbook, and they had to cancel the conference. As a result, the conference organizers filed a claim, seeking compensation for the Loss of Bargain, i.e., the opportunity lost due to the hotel's breach of contract.
An athlete signed a contract with a sports apparel company to endorse their products for the next three years. However, the company failed to launch the athlete's product line, leading to a loss of income for the athlete due to not being able to fulfill their contractual obligations.
Legal Terms Similar to Loss of Bargain
Expectation damages - A monetary compensation awarded to a party as a result of their lost benefit of the bargain due to the other party's breach of contract.
Opportunity Cost - The benefit that a person or a company would have received if they would have chosen an alternative option.
Consequential damages - The damages that are the result of a breach of contract, and are a result of the actions by the other party.