What is the test for calculating the damages of a plaintiff in a rescission action?

California, United States of America


The following excerpt is from Warfield v. Richey, 167 Cal.App.2d 93, 334 P.2d 101 (Cal. App. 1959):

'In the rescission action a plaintiff is entitled to recover the consideration he gave on restoration or offer of restoration of that which he received. He is also entitled to recover compensation for whatever consequential damages he may have suffered by reason of having entered into the contract. In the latter case, a plaintiff is entitled to recover the difference between the actual value of that with which the defrauded person parted and the actual value of that which he received together with additional damage arising from the particular transaction.' Lobdell v. Miller, supra, 114 Cal.App.2d at page 343(17)(18), 250 P.2d at page 367.

'As long as there is available a satisfactory method for obtaining a reasonably proximate estimation of the damages, the defendant whose wrongful act gave rise to the injury will not be heard to complain that the amount thereof cannot be determined with mathematical precision.' Noble v. Tweedy, 90 Cal.App.2d 738, 746, 203 P.2d 778, 782.

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