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 some of the conditions of 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 a remedy that requires the breaching party to return any money or property received from the non-breaching party. In this case, Jenson was paid $1,000 before he started shoveling the snow, but he breached the contract on the first day. Therefore, he should refund the money to Johnson as restitution. Compensatory damages are awarded to compensate the non-breaching party for losses or damages suffered as a result of the breach, but in this case, Johnson did not suffer any loss or damage other than the loss of the bargain. Liquidated damages are damages that are specified in the contract as a pre-determined amount in case of breach, but there is no indication in the scenario that such damages were specified in the contract. Consequential damages are damages that are foreseeable losses suffered by the non-breaching party as a result of the breach, but there is no indication in the scenario that Johnson suffered any consequential damages.

Jenson and Johnson Enter into a Contract That Involves Johnson