BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Mitigation of damage doesn’t give any right to the party in breach of contract, but it is applied by Courts while awarding damages. Also, reasonable steps to mitigate the loss should be taken by plaintiff otherwise he cannot claim the amount of loss which he could mitigate. 1.

Detailed explanation-2: -The duty of a plaintiff to mitigate its damages is a long-standing tenet of contract law. In effect, if an injured party can reduce the harm to it as a result of the breaching party’s conduct, then it has a legal obligation to do so.

Detailed explanation-3: -Mitigation of damages is a contract law concept that arises if a contract is breached. It means that the non-breaching party to a contract may be required to take steps to minimize their losses after the other party breaches the contract.

Detailed explanation-4: -In a breach of contract case, upon receiving notice that one party to a contract does not intend to perform, the other party is required to mitigate damages, meaning that it must take reasonable efforts to avoid further losses from the breach.

Detailed explanation-5: -Section 73 clearly states that the party who has suffered, since the other party has broken promises, can claim compensation for loss or damages caused to them in the normal course of business. Such damages will not be payable if the loss is abnormal in nature, i.e. not in the ordinary course of business.