Question

One reason why a court might award reliance damages rather than expectancy damages in a breach of contract case is

Group of answer choices

reliance damages are the preferred method of recovery

reliance damages are almost always larger than expectancy damages

expectancy damages may be speculative and therefore difficult to compute

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Question 151 pts

Homeowner H contracts with painter P to paint his house on April 30 for the amount of $5,000. The fair market value of this paint job is $6,000, but P gave H a discount because business has been slow. On April 28 P is offered $8,000 to paint somebody else's house on the 30^th but turns that offer down because he felt morally obligated to comply with his contract with H (and he couldn't do both jobs). On the 30^th, P paints H's house, but H refuses to pay him anything. It cost P $3,000 to paint H's house. In a lawsuit for breach of contract, against H, P's expectancy damages are

Group of answer choices

$2,000

$3,000

$4,000

$5,000

$6,000

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Question 161 pts

(Continuation of previous question.) P's reliance damages are

Group of answer choices

$2,000

$3,000

$4,000

$5,000

$6,000

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Question 171 pts

(Continuation of previous question.) P's restitution damages against H are

Group of answer choices

$2,000

$3,000

$4,000

$5,000

$6,000

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Question 181 pts

(Continuation of previous questions.) Now suppose that, all other things being equal, P accepted the offer to paint somebody else's house for $8,000 and therefore breached his contract with H. H found another painter to do a comparable job for $6,000. In a subsequent breach of contract lawsuit against P, H's expectancy damages would be

Group of answer choices

$1,000

$2,000

$3,000

$4,000

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Question 191 pts

(Continuation of previous question.) H's restitution damages against P would be in the amount of

Group of answer choices

$1,000

$2,000

$3,000

$4,000

Answer 1

Question 15 :  P's expectancy damages are:

Answer : $5,000

Reason : It is the damage P was expecting to be recieved

Question 16 : P's reliance damages are:

Answer : $3,000

Reason : It costed P $3,000 to paint the house, which would have costed in case of no contract.

Question 17 : P's restitution damages against H are:

Answer : $6,000

Reason : Restitution will always involve a loss to the innocent party that benefits the other party. The fair market value of the paint is $6,000. Thus, the job done for him is worth $6,000.

Question 18 : H's expectancy damages would be:

Answer : $1,000

Reason : H would have paid $5,000 to P, but now has to pay $6,000 to someone else because of breach of contract.

Question 19 : H's restitution damages against P would be in the amount of

Answer : $4,000

Reason : H's damage is $1,000 (extra that he paid) and gain to P after breach is $3000 (P got $8,000 instead of $5,000). The total of both forms the restitution damages.