Mitigation of Damages

Nonbreaching parties must take reasonable steps to mitigate damages.

Representative cases

• Meyer Natural Foods LLC v. Greater Omaha Packing Co. 302 Neb. 509 · Nebraska Supreme Court
• Cavallo v. Phoenix Health Plans, Inc. Arizona Supreme Court

Related Remedies rules

• Expectation DamagesDamages aim to put the nonbreaching party in the position as if the contract were performed.
• Consequential DamagesDamages are recoverable if foreseeable at the time of contracting.
• Incidental DamagesIncidental damages include reasonable expenses incurred due to breach.
• Restitution DamagesRestitution prevents unjust enrichment by awarding the value of the benefit conferred.
• Reliance DamagesReliance damages compensate for expenditures reasonably made in reliance on the contract.
• Liquidated DamagesLiquidated damages are enforceable if reasonable at formation and not punitive.
• Specific PerformanceSpecific performance is available when monetary damages are inadequate and the terms are sufficiently definite.
• Replevin (UCC)Buyers may recover identified goods wrongfully withheld if unable to cover.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.