What is the test for a preliminary injunction to prevent a third party from continuing to exercise their rights as a result of a breach of contract?

Applying the foregoing principles, we conclude that the trial court properly granted respondents' motion for a preliminary injunction. First, respondents established the likelihood of prevailing on the merits. ( White v. Davis, supra, 30 Cal.4th at p. 554, 133 Cal.Rptr.2d 648, 68 P.3d 74.) Under basic contract principles, when one party to a contract feels that the other contracting party has breached its agreement, the non-breaching party may either stop performance and assume the contract is avoided or continue its performance and sue for damages. Under no circumstances may the non-breaching party stop performance and continue to take advantage of the contract's benefits.

[167 Cal.App.4th 444]