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Consider the following scenario: on Monday, Principal and Agent sign a contract whereby Principal promises to invest $1 and Agent promises to honestly manage the
Consider the following scenario: on Monday, Principal and Agent sign a contract whereby Principal promises to invest $1 and Agent promises to honestly manage the money and share the expected profit of $1 on a fifty-fifty basis. On Tuesday, Principal delivers $1 to Agent. On Wednesday, Agent has a change of heart, goes to Las Vegas, and gambles away the $1 previously received from Principal. On Thursday, Principal sues Agent for breach of contract. On Friday, courts award reliance damages to Principal. How much should Agent pay Principal? O $1 O $2 O $3 O $4 O $5
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