Which of the following terms refers to a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract?
A) tender of performance
B) mitigation of damages
C) liquidation of damages
D) disclaimer of consequential damages

Question

Quizplus · Accepted Answer

Mitigation of damages refers to a nonbreaching party's legal duty to take reasonable steps to avoid or reduce damages caused by a breach of contract. This duty helps to ensure that the nonbreaching party does not unreasonably increase the damages and losses associated with the breach, and it may involve actions such as seeking alternative sources of goods, services, or financing. Tender of performance refers to a party's offer to perform its obligations under a contract, while liquidation of damages refers to a contractual provision that sets forth the amount of damages that will be payable in the event of a breach. A disclaimer of consequential damages is a contractual provision that limits or excludes liability for certain types of damages that may result from a breach.

Which of the Following Terms Refers to a Nonbreaching Party's