How could the mitigation requirement create an incentive

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Question: Restraining reliance before breach reduces the harm that it causes. "Mitigating" damages after breach also reduces the harm that it causes. In the Waffle Shop case, for example, Yvonne can mitigate harm by reselling the supplemental food order to another restaurant. The common law requires the promise to mitigate damages. Specifically, the promise must take reasonable actions to reduce losses from the promisor's breach. Describe the efficient amount of mitigation. How could the mitigation requirement create an incentive for efficient mitigation?

Reference no: EM131908454

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