Contracts

Mitigation of Damages

Definition

The duty to mitigate requires the non-breaching party to take reasonable steps to minimize losses after a breach of contract. Also called the doctrine of avoidable consequences, it does not require heroic or unreasonable efforts but does bar recovery for losses that could have been reasonably prevented. The breaching party bears the burden of proving that the non-breaching party failed to mitigate.

Example

An actress is wrongfully fired from a film. She must make reasonable efforts to find comparable work. However, she need not accept a "different or inferior" position.

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