Question
4. Landscaper enters into a contract with Owner to landscape Blackacre for $10,000. Landscaper has completed part of the work at a cost to Landscaper
4. Landscaper enters into a contract with Owner to landscape Blackacre for $10,000. Landscaper has completed part of the work at a cost to Landscaper of $6,000. Landscaper never completed the work. Landscaper's work has increased the market value of Blackacre by $5,000. The market cost to have a similar landscaper do the work is $5,500. Owner has not paid Landscaper. If Owner was the breaching party, what is Landscaper's restitution interest? If Landscaper is in total breach, what amount can Landscaper recover under a restitution theory? Explain your reasoning.
5. Surgeon contracts to perform a series of emergency operations on Patient for $3,000. Surgeon does the first operation, saving Patient's life. In view of Patient's life expectancy and earning powers, Patient's life can be valued at $1 million. The market price to have an equally competent surgeon do the first operation is $1,800, and the market value of the subsequent operations would be $2,000. Patient refuses to pay anything after the first operation. Surgeon does not perform the subsequent operations. How do you measure the restitution benefit conferred if there is a large disparity between the calculations? Explain your reasoning.
6. Landlord and Tenant entered into a lease agreement for a piece of property. The term was five years with a rent of $40,000 a year. Under the lease, Tenant had the right to construct buildings on the property. Tenant also had the right to remove the buildings at the end of the lease term. The buildings that Tenant intended to build were not permanent structures. Tenant did construct two buildings at a cost of $100,000. Tenant's intent was to move the buildings at the end of the lease term. After four years, Tenant refused to pay any further rent under the lease agreement, thereby breaching the agreement. Landlord justifiably terminated the agreement and legally ejected Tenant from property. Landlord refused to let Tenant dismantle the buildings. The buildings increased the value of the property by $60,000. Landlord vigorously attempted to find a new tenant for the one year remaining on the lease but was unable to do so. What remedies issues would arise if the two parties sued one another for breach of contract? Explain your reasoning.
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