Contract Law: Mitigation of Damages
Mitigation – requires the use of reasonable care and diligence in an effort to minimize of avoid injury.
General Rule: A plaintiff cannot hold a defendant liable for damages which need not have been incurred; or, as it is often stated, the plaintiff must, so far as he can without loss to himself, mitigate the damages caused by the defendant’s wrongful act.
Case Examples:
- Rockingham County v. Luten Bridge Co. – the non-breaching party was unable to recover costs incurred after notice to breach was given
- Mr Eddie Inc. v. Ginsberg – an individual spent additional money in search of alternative employment in an effort to mitigate the damages of a breached employment contract
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