CAF-4 · Chapter 10 · Question 12 of 12
Duty to 'mitigate' loss means that the injured party:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Must take reasonable steps to minimize the loss resulting from the breach.
Explanation
The law requires the victim of a breach to act reasonably to keep their losses as low as possible; they cannot recover for losses they could have avoided.
More Remedies for breach of contract MCQs
- Q2Compensation is NOT to be given for any ___________ loss or damage sustained by reason of the breach.
- Q3When a contract contains a clause stating a specific amount to be paid in case of a breach, this is known as:
- Q4Under Section 74, if a sum is named as the amount to be paid in case of breach, the party complaining is entitled to:
- Q5The primary purpose of awarding damages for breach of contract is:
- Q6What are 'nominal damages'?