In an example of expectation damages, what is calculated as part of the damages if a seller defaults?

In the context of expectation damages, the goal is to place the injured party in the position they would have been in had the contract been fully performed. When a seller defaults on a real estate transaction, the buyer suffers a loss that is typically assessed based on the difference between the contract price and the market value of the property at the time of the breach. This difference reflects the loss in property value and is essential for calculating the buyer's damages.

When determining expectation damages, focusing on the value of the property provides a clear picture of what the buyer has lost due to the seller's failure to perform the terms of the agreement. Other options, such as sales commission fees or future maintenance costs, may be relevant in certain circumstances, but they do not directly relate to the primary measure of expectation damages associated with a breach of contract regarding the property's sale. Mortgage interest payments, while potentially burdensome to the buyer, are not a direct result of the seller's breach and do not capture the essence of the lost value in the property being purchased. Therefore, assessing the loss in property value aligns directly with the expectations set by the transaction and is the cornerstone of calculating these damages.