Question

Valerie contracts with Esteban, who agrees to build a stone retaining wall and drain on her property. The wall and drain are necessary to prevent erosion of her land, which is falling into the creek on her property at a rapid rate. If Esteban breaches the contract, Valerie is under a legal obligation to:__________.
a. wait until Esteban is prepared to build the wall and drain.
b. mitigate her damages.
c. do nothing, because she is the innocent party and thus has no legal duties.
d. absorb all of the costs associated with the property erosion caused by Esteban's breach.

Answer 1

Answer:

The correect answer is b. mitigate her damages.

Explanation:

The duty to mitigate damages, also called the duty of cooperation or obligation for itself, constitutes a limit  to the protection of the right of the affected party with the breach in regard to the amount of compensation, which arises after the cause of the damage.

This legal figure imposes on the creditor the duty to take reasonable measures at its disposal to reduce the damage arising from the  breach of contract and, correspondingly, abstain  of those unreasonable that can increase it. This means that the mitigation duty operates as a disincentive mechanism to  the passive or negligent attitudes of the creditor in the face of default, and prompts him to prevent the aggravation of the damage.