What is the test for determining whether a defendant is liable for the difference between the amount purchased by a purchaser and the amount paid by the purchaser?

California, United States of America


The following excerpt is from Cory v. Villa Properties, 180 Cal.App.3d 592, 225 Cal.Rptr. 628 (Cal. App. 1986):

The court added, " 'In reliance on defendant's information plaintiffs purchased the property. If the property was worth less than they paid for it, defendant is liable for the difference. On the other hand, if the lots were worth what plaintiff paid for them, plaintiffs were not damaged by their purchase, for even though they would not have bought the lots had they known the truth, they nevertheless received property as valuable as that with which they parted.' " (Overgaard v. Johnson (1977) 68 Cal.App.3d 821, 827, 137 Cal.Rptr. 412.)

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