The Three Step Procedure

We can figure out Hawkins's compensation under the expectations measure by applying three steps of the expectation measure:

1) The Promise-Kept Position: What position would Hawkins have been in if the the promise had been kept?

2) The Result-of-the-Breach Position: What position was Hawkins in as a result of the breach?

3) The Difference in Value: What is the difference in value (measured in money) between the promise-kept position and the result-of-breach position?

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