out-of-pocket rule

Definition of "out-of-pocket rule"
  1. It's a method for calculating the damages resulting from fraud in specific jurisdictions. It works by comparing the amount the plaintiff paid against the market value of the thing they purchased, instead of measuring it against the value the defendant assigned
How to use "out-of-pocket rule" in a sentence
  1. The court applied the out-of-pocket rule to determine the extent of financial loss due to the act of deceit.
  2. Use of the out-of-pocket rule helped to quantify the amount that the victim had overpaid due to fraud.
  3. As per the out-of-pocket rule, evidence of market value at the time of purchase is required.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z