In preparation for performance, B spends money on advertising, hiring sales personnel, and acquiring premises that cannot be used for other purposes. A then repudiates before performance begins. If neither party proves with reasonable certainty what profit or loss B would have made if the contract had been performed, B can recover as damages his expenditures in preparation for performance. An injured party who has performed in part will usually prefer to seek damages based on his expectation interest instead of a sum of money based on his restitution interest because such damages include his net profit and will give him a larger recovery. In the case of a contract on which he would an inured party would have sustained a LOSS instead of having a profit, his restitution interest may be larger recovery that would expectancy or reliance damages.
B repudiates the contract and abandons the project.
A can recover in restitution based on the reasonable value of his services. The terms of the contact are evidence of this value but are not conclusive.