What happens if a contract is breached? Which of the following is correct?
A. If there is a breach of the contract the contract is considered at an end and each party is permitted to take back their property, but damages will not usually be awarded, except in unusual circumstances
B. Once a contract is breached then usually the innocent party can sue for damages and is not bound to fulfil any further obligations under the agreement
C. The only remedy available to an innocent party for breach of contract is damages
D. If a contract is breached, then the innocent party must apply to a court for an order declaring that a breach has occurred, otherwise no remedy is available to that innocent party
Answer: B. Once a contract is breached then usually the innocent party can sue for damages and is not bound to fulfil any further obligations under the agreement
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