What remedies does Penguin Ltd have available?

Penguin Ltd has a contract with Blue Company. Blue Company has just broken a warranty in the contract.

What remedies does Penguin Ltd have available?
A . they can sue and claim damages
B. they can claim damages and terminate the contract
C. they can terminate the contract but cannot claim damages
D. they can claim damages but not terminate the contract

View Answer

Answer: D

Explanation:

They can claim damages but not terminate the contract. If Blue company has broken a Condition, they would be able to terminate the contract, but this isn’t the case for a breach of a Warranty. See p.43 for more details