Restraining reliance before breach reduces the harm that it causes. Mitigating damages after breach also reduces the

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Restraining reliance before breach reduces the harm that it causes. “Mitigating” damages after breach also reduces the harm that it causes. In the Waffle Shop case, for example, Yvonne can mitigate harm by reselling the supplemental food order to another restaurant. The common law requires the promisee to mitigate damages. Specifically, the promisee must take reasonable actions to reduce losses from the promisor’s breach. Describe the efficient amount of mitigation. How could the mitigation requirement create an incentive for efficient mitigation?

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Law and economics

ISBN: 978-0132540650

6th Edition

Authors: Robert cooter, Thomas ulen

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