Question

1. Do you agree that innocent parties who are injured due to breach of contract should have a duty to mitigate damages? Defend.
2. Why wasn’t the advertising done by Palisades sufficient to be considered mitigating damages?

Palisades Plaza entered into a five-year commercial lease agreement with Austin Hill Country Realty (Austin Hill) for office space. The lease called for Palisades to improve and configure the space according to Austin Hill’s specifications prior to them beginning the lease. Towards the end of the improvements, Palisades began to receive conflicting instructions on finalizing the space and requested that one of Austin Hill’s principals be designated to give instructions. Ultimately, the parties could not come to an agreement and Austin Hill never took occupancy of the leased space. Palisades notified Austin Hill that they considered the contract repudiated and sued them for breach of contract. At the same time, Palisades advertised the office space in a local newspaper, but did not advertise in a widely circulated commercial property trade paper that they had used in the past. Austin Hill argued that Palisades had not attempted to mitigate their damages and were not entitled to the full judgment for breach of the lease.



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  • CreatedNovember 06, 2014
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