out-of-pocket

1. Calling for the spending of cash: out-of-pocket expenses.
2. Lacking funds: hungry, cold, and out-of-pocket travelers.

Method of measuring damages in breach of contract or warranty cases or cases involving fraud or misrepresentation. Calculated as the difference between the actual value of what was received and the purchase price. Compare benefit of the bargain (rule). 687 P. 2d 1087.