Question

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage. Isaac sells the fruit to Kayo Beverage Company. This sale represents a. ​a breach of contract. b. ​a mitigation of damages. c. ​a reformation d. ​a quasi contract.

Answer 1

Answer:

The correct answer is option b.

Explanation:

Here, when the Juice smoothies does not pay Issac, the selling of fruits is an example of mitigation of damages.

Mitigation of damages can be referred as a contract law under which a victim of breach of law can take actions in order to minimize damages. It means to take any reasonable opportunity possible under the given circumstances to minimize or reduce damages. Though taking extreme actions is not required.