Erte holds 1,000 pounds of perishable fruit in storage for Fresh Stuff Corporation. Fresh Stuff does not pay for the storage. Erte sells the fruit to Green Grocers, Inc. at a loss. This sale by Erte to Green Grocers represents:

A) a breach of contract

B) a mitigation of damages

C) rescission and restitution

D) specific performance

Question

Zain Compton

Social Studies

28 February, 06:50

Erte holds 1,000 pounds of perishable fruit in storage for Fresh Stuff Corporation. Fresh Stuff does not pay for the storage. Erte sells the fruit to Green Grocers, Inc. at a loss. This sale by Erte to Green Grocers represents:

A) a breach of contract

B) a mitigation of damages

C) rescission and restitution

D) specific performance

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Answers (1)

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Bautista · Answer 1

Answer: Mitigation of damages

Explanation: The concept of Mitigation of damages defines the action an individual or party who has suffered or incurred a loss arising from a breach of contract should take in other to lessen or mitigate the effect of the contract breach. This will lessen or reduce the loss incurred as a result of the breach caused by the other party. Once there is a breach of contract, Mitigation of damages becomes a duty on the party who has suffered a loss and should therefore, prevent increased 'avoidable loss' caused by the contract breach. Further losses incurred has a result of failure to mitigate damages won't be catered for by the party guilty of the breach of contract.