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, materially 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 refers to the return of money or property that has been improperly or mistakenly received. In this case, Jenson received payment for work he did not perform, making restitution the appropriate remedy. Compensatory damages would be appropriate if there was a loss or harm suffered by Johnson due to Jenson's breach, but that is not mentioned in the scenario. Liquidated damages are a pre-agreed upon amount in the contract that would be paid in the event of a breach, but that is not mentioned in the scenario. Consequential damages are damages that result from the breach and do not apply in this scenario.

Jenson and Johnson Enter into a Contract That Involves Johnson