(a) That's right. 

You were asked to select the statement that correctly describes whether, in the  given circumstances, B is entitled to terminate further performance of the contract.

It is correct to say that, in this situation, B cannot stop further performance of the contract because, although there has been a breach of contract, it is only a breach of warranty and a breach of this kind does not justify termination.

It is incorrect to say that, in this situation, B can stop further performance of the contract because there has been a breach of contract and any breach of contract gives the non-defaulting party the right to terminate performance of outstanding obligations.

It is incorrect to say that, in this situation, B cannot stop performance of the rest of the contract because he wants to keep and pay for the TVs that A has already delivered and B cannot both enforce the contract and repudiate it at the same time.

Give yourself one mark for this answer.

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