Legal Definitions - Mitigation of Damages

Mitigation of damages is a legal principle that requires an injured party to take reasonable steps to minimize their losses after an event that causes harm. This principle is commonly used in tort and contract law.

• In a breach of contract case, if one party notifies the other that they will not perform their obligations, the other party must take reasonable steps to avoid further losses. For example, if a construction company is hired to build a bridge, but the project is cancelled, the company cannot continue to work on the bridge and increase the damages caused by the breach of contract.
• In property law, if a tenant breaks their lease and leaves the property, the landlord has a duty to mitigate the damages caused by the tenant's breach. This means that the landlord must try to find a new tenant and re-rent the property as soon as possible.

These examples illustrate how the mitigation of damages principle works in practice. Essentially, the principle requires parties to take reasonable steps to minimize their losses and avoid further harm.