Legal Requirements for Mitigation
1. Legal Obligation: When there’s a problem with a contract, both sides need to do their best to fix it quickly. This stops anyone from asking for too much money to make up for the problem.
2. Reasonable Efforts: People just need to do what makes sense to fix the problem, nothing too fancy or impossible. It’s about doing what’s practical to stop the damage from getting worse.
3. Evidence of Mitigation: If there’s a fight about who’s to blame, it’s important to show proof that you tried to fix things as soon as possible. This helps prove you did what you were supposed to do.
4. Timeliness: Acting fast is really important. Waiting too long to fix things can mean you won’t get as much money back for the problem.
5. Avoidable Consequences: The focus should be on stopping more damage that could have been prevented, rather than worrying about things that were going to happen anyway. It’s about preventing what you can control.