Jenson and Johnson enter into a contract that involves Johnson paying Jenson $1, 000 for shoveling the snow from his driveway throughout winter.Jenson, who was paid before work commenced, breached the contract on the very first day.He should refund $1, 000 to Johnson as ________.
A)compensatory damages
B)restitution
C)liquidated damages
D)consequential damages

Question

Quizplus · Accepted Answer

Restitution is the appropriate legal remedy in this scenario, as Jenson received payment before he breached the contract and therefore should return the money he received without having completed the work. Compensatory damages would only be appropriate if Johnson suffered a financial loss due to Jenson's breach, which is not the case here. Liquidated damages would only apply if a predetermined amount of damages was agreed upon in the contract, and consequential damages would require Johnson to prove that he suffered damages beyond the contract itself, which is also not the case here.

Jenson and Johnson Enter into a Contract That Involves Johnson