Article 1. Damages for Breach of Contract - California Civil Code Section 3305

3305.  The detriment caused by the breach of a covenant against
incumbrances in a grant of an estate in real property is deemed to be
the amount which has been actually expended by the covenantee in
extinguishing either the principal or interest thereof, not exceeding
in the former case a proportion of the price paid to the grantor
equivalent to the relative value at the time of the grant of the
property affected by the breach, as compared with the whole, or, in
the latter case, interest on a like amount.

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Last modified: February 16, 2015