Define: Mitigation Of Damages

Mitigation of damages is a legal principle that requires parties who have suffered harm or loss as a result of a breach of contract or other wrongful act to take reasonable steps to minimize or mitigate their damages. This means that the injured party has a duty to make reasonable efforts to lessen the impact of the harm they have suffered by taking appropriate actions to reduce the extent of their losses. Failure to mitigate damages can limit the amount of compensation or damages that the injured party can recover in a lawsuit. Courts expect parties to act reasonably and in good faith to mitigate their losses, such as by seeking alternative sources of income, pursuing substitute goods or services, or taking other reasonable measures to limit their financial losses or expenses.

After a tort, the theory of mitigation of damages requires the victim to take reasonable steps to minimize their loss. For example, the victim should get proper medical care for their injuries. If a plaintiff fails to get proper medical care or remedy the injury the court could decide they will not be fully compensated for their loss.

Mitigating of damages can also occur in other types of cases such as breach of contract. For instance, if a renter breaches a contract and leaves their rental home prior to the expiration of the lease the landlord is required to attempt to mitigate their damages and seek another renter. If they fail to perform this duty the court may decide not to compensate them for the full extent of the lease.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.