Final answer:
The correct answer is false. An injured party in a breach of contract is obligated to mitigate their damages to recover losses. They cannot recover for damages that could have been reasonably avoided.
Step-by-step explanation:
The statement that "a party injured by a breach of contract may still recover for all his damages, even if he could have done something to lower those damages," is false. In the context of contract law, the injured party is obligated to mitigate, or minimize, the damages that result from a breach. This means that if an injured party fails to take reasonable actions to lower their damages after a breach of contract, they may not be able to recover the full amount of damages that could have been mitigated.
This principle helps prevent economic waste and incentivizes parties to behave reasonably, rather than merely seeking maximum monetary recovery. However, it is important to distinguish this from situations in tort claims, such as defamation, where different standards and obligations may apply, like the requirement of actual malice for a public official to recover damages.