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Foundational Principles of Contract Law$
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Melvin A. Eisenberg

Print publication date: 2018

Print ISBN-13: 9780199731404

Published to Oxford Scholarship Online: October 2018

DOI: 10.1093/oso/9780199731404.001.0001

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The Mitigation Principle

The Mitigation Principle

Chapter:
(p.149) Ten The Mitigation Principle
Source:
Foundational Principles of Contract Law
Author(s):

Melvin A. Eisenberg

Publisher:
Oxford University Press
DOI:10.1093/oso/9780199731404.003.0010

Chapter 10 concerns cases in which two parties, A and B, are in a contractual relationship, A is at risk of incurring a significant loss caused by her breach, and B could prevent or reduce A’s loss by taking a low-cost, low-risk action. Under the mitigation principle B should take that action. The mitigation principle is a special case of the duty to rescue in contract law. In the area of contract-law remedies the principle is supported by fairness, causation, and efficiency. The discussion in this Chapter concerns the mitigation principle of contracts, as reflected in the case law, Restatement Second Section 350, and U.C.C. Section 2-203(1).

Keywords:   contractual relationship, mitigation of damages, duty to rescue, breach, mitigation principle

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