Running a business typically results in you entering into many different types of contracts, whether you are providing services to a customer, purchasing goods, or leasing a building. Sooner or later, however, you are likely to become involved in a situation in which you suffer losses due to a breach of contract. Despite your situation, California law does require you to take reasonable and prudent measures to mitigate your losses. This means that you cannot allow your losses to continue to increase without taking some action to minimize the extent of your losses from the transaction.
Mitigation may take a number of different forms, depending on the circumstances. Whatever the case may be, you should take immediate steps to help mitigate his or her losses. For instance, if a vendor is unable to fill your order of supplies, you should find another vendor and get the supplies that you need. You may have to pay slightly more for the supplies, but you still will get the supplies. Therefore, you will have fewer losses, or the amount of the extra costs that you paid to get the supplies, as opposed to losses of the entire cost of the supplies.
If a breach of contract situation ends up in litigation, there can be adverse consequences if you fail to mitigate your damages. More specifically, if the judge finds that you failed to mitigate your damages in a reasonable manner, then he or she may reduce the amount of damages awarded to you. Since mitigation is an important concept in a breach of contract situation, it is essential that you get appropriate legal advice so that you can maximize the damages available to you.
At Heit Law Group, P.C., we are dedicated to helping you build and operate the business that you want, no matter what legal issues may arise in the context of a lawsuit concerning your business. We are here to assess the facts and circumstances surrounding your situation, explore all options that may be available to you, and offer you the tools that you need to handle whatever comes your way. Contact your California business lawyer today and schedule an appointment to meet with us.