The Rule of Mitigation of Damages Requires That a Party

question 6

Multiple Choice

The rule of mitigation of damages requires that a party injured by a breach of contract must:

• A) take any and all steps possible to reduce the damages that will be sustained because of the breach.
• B) discharge the contract before filing suit for breach.
• C) hire someone else to perform the contract.
• D) take reasonable steps to reduce the damages that would otherwise be sustained because of the breach.

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Definitions:

Cent

A monetary unit equal to one hundredth of a dollar or other unit of currency.

Evaluate

To assess or determine the value, significance, or condition of something through analysis or calculation.

Nearest Cent

The nearest cent is a rounding approach where prices or amounts are rounded up or down to the nearest one-hundredth of a dollar.

Evaluate

To carefully assess or appraise the value, quality, or performance of someone or something.