Alice entered into a contract with Paul by the terms of which Paul was to paint Alice's office for $1,000 and was required to do all of the work over the following weekend so as to avoid disruption of Alice's business. For this question only, assume the following facts. Paul commenced work on Saturday morning, and had finished half the painting by the time he quit work for the day. That night, without the fault of either party, the office building was destroyed by fire. Which of the following is an accurate statement? 
Both parties' contractual duties are discharged, and Paul can recover nothing from Alice.  Both parties' contractual duties are discharged, but Paul can recover in quasi-contract from Alice.  Only Paul's contractual duty is discharged, because Alice's performance (payment of the agreed price) is not impossible.  Only Paul's contractual duty is discharged, and Paul can recover his reliance damages from Alice. 