Diminution of Value

A measure of damages for breach of contract which reflects a decrease, occasioned by the breach, in the value of property with which the contract was concerned. In a building contract it "is the difference between the value of the building as constructed and its value had it been constructed conformably to the contract." 143 N.E. 2d 802, 803. "There are two general rules with variations where there are damages to realty and, in some cases, personalty attached to realty. There is the before and after value of realty rule, sometimes referred to as the diminution rule. There is also the restoration or replacement rule which will generally be applied by the court if the injury is temporary and replacement is possible, or if it involves an amount less than that derived from application of the diminution rule." 388 F. 2d 165, 168. Compare cost of completion; damages[expectation damages]; specific performance.