Contract is an agreement between the two or moreparties as well as it must be backed by law. In simple words we can say that acontract is a legal agreement amongst persons by which they are bound by thelaw to do a particular work which has been consented by both or all the partiesto the contract, in the contract. The Indian contract Act 1872 prescribes anddeals with the laws relating to any type of contract in India.In this project I will be discussing about themitigation of losses under the law of contract only and not the mitigation oflosses in torts.
With the word mitigation we mean the action of reducing the severity or simply reduction,by the word mitigation of losses we mean to reduce the losses or to make theloss lessen as much as possible as a prudent man or common man. There are somecases in which persons do agree for the contract to be performed but in certaincircumstances and for various reasons the contract is breached by the one ofthe parties to the contract. In these types of cases, most of the time the nonbreaching party suffers loss because of the breach of contract and for theselosses he may and is files the complaint in the court for the difference in thecontracted amount and actual amount or the losses he had suffered due to breachof contract. But according to the doctrine of mitigation of loss the plaintiffhimself is required to reduce its losses as much as possible because if he hasnot avoided the losses which could be done by the plaintiff easily, he cannotclaim for these avoidable losses which he has suffered due to breach ofcontract by the defendant. Here in case of breach of contract the claimant isentitled to get compensation for the loss he has suffered naturally because ofbreach of contract, but at the same time the claimant is duty bound to reduceor minimize the loss as much as possible through the normal course of action meantto mitigate the loss for the subsequent breach.