46. Subject to the man's claim for damages for breach, how much is the contractor likely to recover for the work he performed?

C is correct. A party that materially breaches a contract is nevertheless entitled to recover, under a theory of restitution, the value of the benefit that the breaching party's part performance conferred on the victim of the breach. Restatement (Second) of Contracts § 374. Here, the contractor is entitled to receive the benefit conferred on the man for the completed foundation, but in light of the breach of the remaining parts of the contract.

A is incorrect. A breaching party cannot recover on a theory of reliance. Reliance damages are awarded to an innocent party for losses suffered due to reasonable reliance on a promise.

B is incorrect. This is not a divisible contract in which performance can be divided into multiple tasks, each with a corresponding price that the other party must pay when the task is completed. Instead, it is a typical construction contract with progress payments due as elements of the job are completed. The contract explicitly states the promise is to build a house, the multiple steps necessary to reach this point are not divisible from the end goal of construction of the entire house. Thus, the contractor does not have a right to recover $60,000 for having laid the foundation. Restatement (Second) of Contracts § 240.

D is incorrect. Contract law generally does not distinguish between willful breaches and other breaches. Restatement (Second) of Contracts § 374; Farnsworth, Contracts § 12.3. This situation would not require a court to consider the reason for the breach to determine the damages owed.