What occurs if the injured party fails to mitigate damages?

If the injured party fails to mitigate damages, the court may reduce the damages awarded. The principle of mitigation of damages requires that the injured party take reasonable steps to lessen or minimize their losses after a breach or injury has occurred. If they do not take such reasonable actions, the court will typically not allow for compensation for the losses that could have been avoided through those actions. This means that damages will be assessed based on what the injured party could have mitigated, potentially resulting in a lower award.

In the context of legal cases, options like the contract being void, receiving higher compensation, or the other party being liable for all damages are not aligned with the legal principle of mitigation. Courts expect parties to act responsibly and minimize their losses, which substantiates the reasoning that failing to mitigate results in a reduction of recoverable damages.