Doctrine of avoidable consequences - Indian Laws - General

Doctrine of avoidable consequences In American Jurisprudence 2d, Vol. 22 para 33 (at pp. 55-56) contains the following statement of law : 33. The general doctrine of avoidable consequences applies to the measure of damages in actions for breach of contract. Thus, the damages awarded to the non-defaulting party to a contract will be determined and measured as though that party had made reasonable efforts to avoid the losses resulting from the default. Some courts have stated this doctrine in terms of a duty owing by the innocent party to the one in default; that is, that the person who is seeking damages for breach of contract has a duty to minimise those damages. However, on analysis, it is clear that in contract cases as well as generally, there is no duty to minimize damages, because no one has a right of action against the non-defaulting party if he does not reasonably avoid certain consequences arising from the default. Such a failure does not make the non-defaulting party liable to suit; it only indicates that the damages actually suffered are greater than the law will compensate. Therefore, in contract actions, the doctrine of avoidable consequences is only a statement about how damages will be measured. M. LACHIA SETTY AND SONS LTD. AND ORS. VERSUS COFFEE BOARD - 1980 (10) TMI 211 - SUPREME COURT