(a) That's wrong. 

You were asked to select the correct statement.

It is correct to say that, in the event of a breach of contract that may cause loss, the non-defaulting party is obliged to do everything that is reasonably possible to minimise the loss.

It is incorrect to say that, in the event of a breach of contract that may cause loss, the defaulting party is obliged to do everything that is reasonably possible to minimise the loss.

It is incorrect to say that, in the event of a breach of contract that may cause loss, no risks should be taken in trying to avoid the loss because additional expenditure that does not reduce the loss cannot be recovered.

Give yourself no marks for this answer.

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