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40. If the producer sues the singer, what will he likely recover?
While the parties were negotiating, the producer began to spend money on the production. When the parties were unable to agree on the terms of a final contract, the producer made reasonable but unsuccessful efforts to hire another singer before abandoning the production.
A popular singer expressed interest in performing in a theater producer's musical production. The producer and the singer agreed that there would be no enforceable contractual obligations between them until they had entered into a final, signed contract. They then began negotiating the terms of the contract.
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A is incorrect. The producer's expectation damages would be too speculative to measure. The producer cannot show with certainty the profits if the singer would have performed the contract.
B is incorrect. The producer cannot recover reliance damages because it was unreasonable for the producer to rely on the singer when the parties were only in negotiations.
C is incorrect. Restitution may be available even in a non-contract situation to prevent unjust enrichment. A plaintiff may recover for the work performed or the services rendered. However, the producer is not entitled to restitution in this situation because he did not have a reasonable expectation of being compensated, the singer had no reason to know of the producer's expectations, and the singer is not unjustly enriched by not compensating the producer.