When a contract is breached, the innocent party cannot sit back, let losses mount, and send the bill to the other side. The law expects them to take reasonable steps to limit their loss — and damages are calculated on that basis. For a solicitor advising after a breach, this is where the recoverable figure is really decided: knowing when the obligation arises, what your client must do, and the points where mitigation drops away entirely.
This lesson builds the full picture, section by section:
- The Doctrine and Standard — what mitigation is, who must prove a failure to mitigate, and the reasonableness standard expected of the claimant.
- When the Obligation Arises — the moment the duty switches on, and how early losses and anticipatory breach are treated.
- What Reasonable Steps Require — the limits of what a claimant must do, including when a defendant's offer to cure must be accepted.
- Financial Consequences and Collateral Benefits — recovering mitigation costs, increased losses, and which benefits are deducted.
- Mitigation in Sale of Goods and Employment — how the rules play out in available-market and wrongful dismissal scenarios.
- Debt Claims and the Affirmation Exception — where mitigation does not apply, and the legitimate interest requirement.