Judy owns an apartment building, and Juan expresses interest in renting from her. Over the phone on Tuesday, the two agree in principle to a lease and all of its material terms. Juan tells Judy that he will stop by her office on Thursday morning to sign the lease, so that he can move in to the apartment that afternoon. Given the short timeline, Judy scrambles on Wednesday to prepare the apartment for Juan's coming arrival. She hires a cleaning crew on short notice, and also has a painter clean and repaint the walls.

On Thursday morning, though, Juan does not come to Judy's office and instead calls to say that he is no longer interested in the apartment. Judyout several hundred dollars from cleaning the placeis upset and wants to collect those costs from Juan. Can she?

• Yes. This is a case for reliance damages; Judy had the apartment cleaned in reasonable reliance on Juan's promise to lease it.
• Yes, because the terms of the lease govern, and it almost certainly covered the apartment cleaning.
• No, because there was no contract between Juan and Judy.
• No, because Judy's cleaning of the apartment was not a reasonable expenditure.