mitigation of damages
Definition
When someone wrongs you and causes you financial harm, the law expects you to take reasonable steps to limit how bad that harm gets rather than just letting your losses pile up. You cannot sit back and watch your losses grow and then expect the other party to pay for all of it.
Example
If a tenant breaks their lease and moves out early, you as the landlord cannot leave the unit empty for six months and bill the tenant for all the lost rent. You are required to actively look for a new tenant to fill the vacancy.
Watch Out
If you fail to take reasonable steps to reduce your losses, a court may reduce the amount of money you can recover even if the other party was clearly in the wrong.
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.