Suppose that a buyer and a seller signed a contract for a production and delivery of a machine. he value of a contract to a buyer, V, is a function of her investment in reliance, r, as follows: V(r) = 400 if r = 100

= 560 if r = 200

= 680 if r = 300

The contract price, payable on performance, is 150. The probability that the seller will breach is 1/3 (one third). Assume that the buyer's reliance has zero value once the contract is beached. Examine three contract damages: expectation, reliance, or restitution. Under which measure of damages will the buyer engage in efficient reliance? Justify your answers. (Hint: The above case is very similar to the model of 'taking' discussed at the end of property law.)