The contract between a subcontractor and a prime contractor provided that if the owner terminated the prime contract "for any cause whatsoever at any time," the subcontract would also be terminated and the prime contractor's liability would be limited to payment for work done. The subcontractor partially performed but was not paid in accordance with the subcontract. Yet the subcontractor continued performing until it heard that the owner had terminated the prime contract. It then stopped performing, relying not on nonpayment but rather on the owner's termination having been caused by the prime contractor's default. The owner's termination was based on its contractual power to terminate for its convenience. The owner terminated because it felt that the project would not be needed.

Questions:

1. Can the subcontractor recover from the prime contractor for work it has performed?
2. Can the subcontractor recover its lost profits from the prime contractor?
3. Would the subcontractor have been able to terminate for the prime contractor's failure to make payments?