Which statement is true about defences to damages?

Which statement is true about defences to damages?

• A. The breach did not cause the loss
• B. The breach caused the loss
• C. The loss was unrelated
• D. The breach occurred after the loss

Answer: (A)

The key idea is causation in damages. In contract, you only recover damages if the breach actually causes the loss. If the breach did not cause the loss, there’s no liability for damages, so that statement is true as a defence. The other options don’t fit as defences: saying the breach caused the loss would support a claim for damages, not defend against them. Saying the loss was unrelated is essentially asserting no causal link, which overlaps with the true point but isn’t framed as the proper defence language. Saying the breach occurred after the loss is impossible for a damages claim, since the breach must come first to cause any loss.

The key idea is causation in damages. In contract, you only recover damages if the breach actually causes the loss. If the breach did not cause the loss, there’s no liability for damages, so that statement is true as a defence.

The other options don’t fit as defences: saying the breach caused the loss would support a claim for damages, not defend against them. Saying the loss was unrelated is essentially asserting no causal link, which overlaps with the true point but isn’t framed as the proper defence language. Saying the breach occurred after the loss is impossible for a damages claim, since the breach must come first to cause any loss.