On August 1, Brian Contractually Agreed to Purchase a Diamond

question 72

Multiple Choice

On August 1, Brian contractually agreed to purchase a diamond from Mila for $100 000.On that date, Brian prepaid half of the purchase price and promised to pay the other half upon delivery.Mila promised to deliver the diamond to Brian on October 1.The diamond has a unique size and shape.In anticipation of receiving it, Brian spent $25 000 on a custom-made ring that could accommodate the diamond.On September 1, political revolutions in several diamond producing countries disrupted the flow of diamonds.The diamond that was the subject of Brian and Mila's contract consequently increased in value to $150 000.Mila therefore refused to deliver the diamond to Brian.Which of the following is an accurate statement?

• A)Brian is entitled to receive restitution of $100 000.
• B)Brian is entitled to receive restitution of $150 000.
• C)Brian is entitled to receive reliance damages of $25 000.
• D)Brian is entitled to receive reliance damages of $75 000.
• E)Brian is entitled to receive expectation damages of $150 000.

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Definitions:

Economy

Economy encompasses the system by which goods and services are produced, distributed, and consumed within a society, influenced by governmental, cultural, and environmental factors.

Goods and Services

The tangible products (goods) and intangible items (services) that are produced and provided to meet the needs and wants of consumers.

Market Economy

An economic system in which supply and demand drive the production and distribution of goods and services, with minimal government intervention.

Specialization

Focus on a narrow area of expertise or production to increase efficiency and output.