You must mitigate your losses in a breach of contract case in order to recover the financial damages associated with the breach. What steps are you required to take in order to mitigate your losses? What happens if you fail to reduce the losses associated with a breach of contract?
Quite simply, the failure to take prompt and prudent action to reduce the losses you incur as a result of a breach of contract may limit or eliminate altogether your legal right to recover damages from the breaching party. You cannot go into Court and force a party to perform under the original business contract or agreement. Business lawsuits and disputes are resolved in compensation based upon the financial “damages” associated with your case. Damages are the key to any business dispute and are the financial value of the loss from the contract breach or the additional costs required to find another solution.
There are many forms of damages in a San Diego business lawsuit. “Compensatory Damages” repay you for the losses you received as a result of not receiving the benefit of the bargain due to the contract breach. “Liquidated Damages” are often specified within business contracts and represent an agreed upon value for the failure to complete a contract. When fraud or some other rare complication arises the court may award “punitive damages” as a form of punishment for the fraudulent actions. “Restitution” allows the party who did not cause the breach to ensure the breaching party does not benefit as a result of breaching the original agreement. For example, receiving goods and then not paying for them.
If you are the victim of a breach you must mitigate your losses in a breach of contract case in order to pursue damages from the party who caused the breach. We invite you to contact the experienced breach of contract attorneys at the Watkins Firm for a free consultation at 858-535-1511. Ask about our decades of success experience in these cases and our unique approach to resolving business disputes.