Contract contract Act 1872 prescribes and deals with the

Contract is an agreement between the two or more
parties as well as it must be backed by law. In simple words we can say that a
contract is a legal agreement amongst persons by which they are bound by the
law to do a particular work which has been consented by both or all the parties
to the contract, in the contract. The Indian contract Act 1872 prescribes and
deals with the laws relating to any type of contract in India.

In this project I will be discussing about the
mitigation of losses under the law of contract only and not the mitigation of
losses 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 the
loss lessen as much as possible as a prudent man or common man. There are some
cases in which persons do agree for the contract to be performed but in certain
circumstances and for various reasons the contract is breached by the one of
the parties to the contract. In these types of cases, most of the time the non
breaching party suffers loss because of the breach of contract and for these
losses he may and is files the complaint in the court for the difference in the
contracted amount and actual amount or the losses he had suffered due to breach
of contract. But according to the doctrine of mitigation of loss the plaintiff
himself is required to reduce its losses as much as possible because if he has
not avoided the losses which could be done by the plaintiff easily, he cannot
claim for these avoidable losses which he has suffered due to breach of
contract by the defendant. Here in case of breach of contract the claimant is
entitled to get compensation for the loss he has suffered naturally because of
breach of contract, but at the same time the claimant is duty bound to reduce
or minimize the loss as much as possible through the normal course of action meant
to mitigate the loss for the subsequent breach.

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