(a) That's wrong. 

You were asked to select the correct statement.

It is correct to say that even when performance of a contract is terminated on grounds of breach of contract, the defaulting party remains liable to pay damages for losses caused by their failure to perform.

It is incorrect to say that performance of a contract cannot be terminated on grounds of a breach of an innominate term.  The only remedy for breach of an innominate term is a claim for damages.

It is incorrect to say that, as soon as there is a breach of a condition in a contract, the defaulting party automatically looses their right to discharge outstanding obligations by performing them.

Give yourself no marks for this answer.

Go to the next question...