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Question: Jones and Smith have a contract that will produce $100 in benefits for each of them if they both carry out their duties under it. If Jones breaches the contract, he will create $140 in benefits for himself, and Smith will only get $40. What are the expectation damages a court should order Jones to pay? Explain. What if Jones's breach gives him benefits of $170, while Smith again gets $40? In this case, why would an economist recommend that Jones breach the agreement? Does your answer change if a court for some reason lets Jones keep all of his gains, leaving Smith with just $40? Why or why not?

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