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ABC Ltd has entered into a contract with DEF Ltd.

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ABC Ltd has entered into a contract with DEF Ltd. The contract provides that breach a particular term entitles the innocent party to terminate the contract.  What is the legal status of that term?

A.

The term is a condition.

B.

The term is a warranty.

C.

The term is a penalty clause.

D.

The term is an in nominate term.

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