​What is the obligation to reduce damages, and why is it important?

What is the obligation to reduce damages, and why is it important?
 
The legal need to mitigate damages is a puzzling and complicated notion that compels an aggrieved party to take reasonable steps to lessen their losses. The justification for establishing this responsibility is to prevent the aggrieved party from claiming damages that might have easily been avoided with reasonable efforts. This responsibility applies in contract and tort law, and the reduction of losses provision is often codified in contracts. Yet, this responsibility is not absolute, and the steps an offended person must take to reduce damages are limited.
 
The imposition of the responsibility to minimize losses is based on four exceedingly complicated factors and may be perplexing. The first reason is to prevent the plaintiff from worsening their losses, which means they cannot deliberately or negligently exacerbate the issue. The second purpose is to urge plaintiffs to mitigate their losses proactively. The third rationale is to prevent windfall awards for plaintiffs who have yet to attempt to reduce their losses. Lastly, the fourth rationale encourages resource efficiency by forcing plaintiffs to make reasonable attempts to mitigate their losses.
 
 
The responsibility to alleviate damages has been the subject of several objections, which may perplex one. One objection is that the obligation is unjust to plaintiffs since it compels them to take proactive steps to reduce damages, which is only sometimes practicable. Moreover, the obligation may only sometimes deliver fair outcomes since it only considers some facts surrounding a certain instance. Moreover, the duty to mitigate may be superfluous since the common law normally requires that damages be compensatory rather than punitive.
 
The responsibility to reduce losses is legislated in the Civil Code of China, with separate sections covering contract and tort law. The fundamental distinction between Chinese law and common law is that the damaged party must take action to reduce their losses within a defined time frame. Please do so within this period to avoid the injured party liable for further damages.
 

Practising lawyers

Robert Zhang

An international lawyer registered in Shanghai, China. Master's degreePublish…

Steve Li

An international lawyer registered in Shanghai, China. Master's degreePublish…

ABOUT AUTHOR

We are a group of China local lawyers from a few law firms
Email: elitelawyers@outlook.com
My blog: http://www.shanghailawyer.xyz