The Mitigation Principle is Applicable to More than One Area of Law

mitigationPersons wishing to sue for damages resulting from Breach of Contract are wise to assess the type of damages, recoverable, prior to going ahead with a formalized claim. The principle of providing an injured party with damages for breach of contract is that of awarding compensation to the injured party from the loss that is resultant of the breach. The damages do not punish the negligent party. The idea is that the damages should make it possible to put the claimant, in the same relative position, as if the contract had been performed in a manner most satisfactory to both parties. The fairness in awarding damages requires calculating the loss and damage caused by the Breach of Contract.

Rules, as to determination and quantification of damages, relative to a contract when it comes to the sale of products are part of the law—in general.

The mitigation principle is a primary component in the determination of damages. When there is a market available for goods, it is presumed that the seller shall mitigate loss, by the sale of goods to that of an alternative purchaser, within the available market. The preceding reduces the seller’s loss. The actual loss is calculated by way of determining the sum which the purchaser, who defaulted, agreed upon when purchasing the goods. The loss is figured by taking the agreed upon price exceeding the price which is attainable. This principle is relative, whether or not the seller is able to attain a buyer to replace the purchaser who previously defaulted on the goods sold to him or her.

Basically, the loss is the difference of the contract price and the market price. The judicial system will assume that the person claiming the loss will have used the preceding principle, in properly calculating damages.

The principle is not applicable when an available market for the product does not exist; or where there is a supply that clearly trumps demand; and when the seller, in a reasonable way, insists the purchaser take delivery and make payment; and the buyer agrees to do it.

The principle though is very complex and can apply to all types of situations. The mitigation principle can apply within the bounds of Employment law and other major legal specialties.

In order to take better control of any loss, it is best to attain the advice of a qualified California law professional, in assuring any complexity of law is handled in a reasonable and efficacious manner.