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Unformatted text preview: house in the same neighborhood for $375,000. The new house, like the Honest house, needed $5,000 in house-specific investments to be liveable. Ms. Professor has now sued Mr. Honest for breach of contract. 1. Determine the damages owed to Professor under each of the three theories of damages. Explain your analysis. a. Expectation damages; b. Reliance damages; and c. Restitution damages. Why are these determinations more difficult than if the good in question was a car or another good for which there are almost identical substitutes? 2. Suppose that Ms. Professor were entitled to specific performance. What outcome would we expect under that remedy? How does it differ from the outcome under expectation damages? Does your answer depend on Professor's subjective valuation? On Dealer's? 3. What is the "efficient" outcome in this case (and similar cases)? Which remedy will induce the efficient outcome?...
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This homework help was uploaded on 04/16/2008 for the course LEGALST 145 taught by Professor Rubenfield during the Spring '08 term at University of California, Berkeley.
- Spring '08