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Which TWO of the following statements in relation to the duty to mitigate losses are correct.
A. It lies with the party in breach of contract
B. It results in an increase of damages
C. It reduces damages
D. It lies with the party who suffers the breachThe answer is C and D. I don’t understand why does it lies with the party who suffers the breach. The party who is in breach of contract should mitigate, isn’t it?
Thank you in advance.
The innocent party, the one that has suffered as a result of the breach, can sue for compensation (damages)
However, that same innocent party should not exacerbate the loss suffered and, on the contrary, should actively try to restrict the loss suffered by taking mitigating steps
Thus the responsibility lies with the innocent party to mitigate the extent of the loss that they have suffered
Does that explain it for you?
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