Jenson and Thomas enter into a contract that involves Thomas 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 Thomas as ________.
A) compensatory damages
B) restitution
C) liquidated damages
D) consequential damages

Question

Quizplus · Accepted Answer

Restitution is the principle that if one party fails to perform their obligations under a contract, they should return any money or property received from the other party. In this case, Jenson was paid $1,000 before the work began, but he breached the contract on the first day, so he should refund the money to Thomas as restitution. Compensatory damages would be applicable if Thomas suffered any financial losses as a result of Jenson's breach, but this information is not given in the scenario. Liquidated damages refer to a predetermined amount specified in the contract to apply in case of a breach, but this is not mentioned in the scenario. Consequential damages refer to damages that are an indirect result of a breach, not applicable in this case.

Jenson and Thomas Enter into a Contract That Involves Thomas