Mitigation

Also known as: Minimization of Loss

In one sentence

A duty to reduce or minimize losses caused by the other party's breach.

Plain English

When someone breaches a contract, you have a duty to mitigate—meaning you must take reasonable steps to limit your losses. You cannot sit back and let damages pile up. For example, if a tenant breaks a lease, the landlord must try to find a new tenant rather than leave the apartment empty and demand full rent. If you fail to mitigate, a court may reduce the damages you can recover.

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Example

An employee is wrongfully fired. Instead of sitting idle, they apply for other jobs and find a new position within two months at similar pay. Their damages are limited because they mitigated their loss by finding new work.

Used in a sentence

“The plaintiff's failure to mitigate her losses by seeking alternative employment reduced the damages awarded.”

Related terms

Damages Calculation

The process of determining how much money a harmed party should receive for a breach.

Material Breach

A significant failure to perform a contract obligation that defeats its core purpose.

Wrongful Termination

Illegal firing of an employee in violation of law, contract, or public policy.

Specific Performance

A court order forcing someone to actually do what they promised in the contract.

Comparative Negligence

A rule that reduces damages based on the victim's own percentage of fault.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.