Which statement about remedies for breach best describes the effect on the contract?

• A. A breach always terminates the contract and ends all rights.
• B. A breach always gives the non-breaching party an automatic entitlement to damages without proof.
• C. A breach may lead to damages or other remedies, or the contract may be discharged in some cases.
• D. The contract continues unchanged regardless of breach.

Answer: (C)

When a contract is broken, there isn’t a single automatic consequence. The remedy chosen depends on what will most effectively correct the situation and, in some cases, bring the contract to an end. Damages are a common remedy to cover loss, but they must be proved and measured, and other remedies may be available if monetary compensation isn’t sufficient—such as specific performance or an injunction. In other situations the contract can be discharged, meaning the parties are released from their obligations, which can happen after certain breaches, anticipatory repudiation, or other terminating events, or even due to frustration. So the statement that best fits the real picture is that a breach may lead to damages or other remedies, or the contract may be discharged in some cases. The ideas that a breach always terminates the contract, or that damages flow automatically without proof, or that the contract continues unchanged regardless of breach, do not reflect how remedies and termination operate in contract law.