Edward Donovan and Donna Donovan, Formerly Known as Donna Rellinger, Plaintiffs-Respondents v. Carl Bachstadt…

Summary

The Supreme Court of New Jersey held that a buyer of real property is entitled to benefit‑of‑the‑bargain damages when the seller breaches an executory contract, rejecting the English rule that limited recovery to deposit and expenses. The Court modified the Appellate Division’s judgment and remanded for a trial on damages, directing the trial court to measure damages by the difference between the contract price and the fair market value at the time of breach, together with reimbursement of title‑search and survey costs.