On August 1,Brian Contractually Agreed to Purchase a Diamond from Mila

question 56

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.Brian is entitled to receive

• A)restitution of $100 000.
• B)restitution of $150 000.
• C)reliance damages of no more than $25 000.
• D)reliance damages of no more than $75 000.
• E)expectation damages of $150 000.

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Definitions:

Donee Beneficiary

A third party who benefits from a contract made between two other parties, specifically where the intent is to benefit the third party.

Creditor Beneficiary

A person or entity that benefits from a contract made between two other parties, particularly where one party promises to pay a debt owed to the beneficiary.

Breach Of Contract

An instance wherein one party fails to fulfill their obligations under a contract.

Credit

The provision of resources (such as money) by one party to another where the second party does not reimburse the first party immediately but promises to repay those resources at a future date.