breach mitigation
Definition
Breach mitigation is your legal duty to take reasonable steps to reduce your own losses when someone else breaks a contract with you. The law does not allow you to sit back and watch your damages pile up just because the other party caused the problem in the first place.
Example
If a supplier suddenly cancels your order, you cannot simply wait months for a court to fix things and then bill the supplier for all your lost profits. You need to go find another supplier as quickly as reasonably possible.
Watch Out
If you fail to take reasonable steps to limit your losses, a judge can reduce the amount of money you recover in court, even when the other party was clearly at fault.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.