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Any damages awarded for breach of contract will be calculated assuming that the

ID: 428738 • Letter: A

Question

Any damages awarded for breach of contract will be calculated assuming that the plaintiff mitigated her damages. Why would we impose the burden of mitigating damages on the plaintiff? Any damages awarded for breach of contract will be calculated assuming that the plaintiff mitigated her damages. Why would we impose the burden of mitigating damages on the plaintiff? Any damages awarded for breach of contract will be calculated assuming that the plaintiff mitigated her damages. Why would we impose the burden of mitigating damages on the plaintiff?

Explanation / Answer

As per law, people are expected to act with reasonable care while dealing with others and have to be rational also. The plaintiff has the responsibility of his/her well-being before anyone else and it is also assumed that a rational person will do all possible efforts to mitigate his/her damages even if the defendant is found responsible for the damage. Therefore any damages awarded for breach of contract will be calculated assuming that the plaintiff mitigated her damages as much as possible in his/her capacity.

Suppose manufacture and buyer of a machine entered into a contract that buyer will purchase a machine for $1000 after one month but after manufacturing, the buyer breaches the contract and refuses to purchase the machine. Now manufacture (plaintiff) approaches to the court for damages due to breach of contract but it is evident from the facts that manufacture can easily sell that machine in market for $800. Then in that case damages awarded for breach of contract will be $1000 -$800 = $200; as it is calculated assuming that the plaintiff can sell machine in market at $800 to mitigated her damages to $200 only.

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