Apr 252012

Breach of contract damages vary greatly, depending on the type of contract:

  • service,
  • purchase,
  • lease,
  • labor/employment,
  • delivery, or
  • materials.

In the event of breach, Pennsylvania law allows for recovery of losses incurred as a result of the breach.  However, every party has a duty to mitigate their damages.

A party that has incurred damage because of the breach of a contract has a duty to mitigate their damages. The nonbreaching party must take reasonable steps to reduce the damages which result from breach.

For example, in a situation where a tenant breaches a lease agreement, the landlord must take steps to rent the property to another tenant. The landlord cannot simply do nothing and expect the tenant to pay rent for the remainder of the lease term. Similarly in a services agreement situation where breach occurs, the service provider must take steps to reduce their damages, such as finding a substitute.

This defense will be raised by the breaching party, who bears the burden of proof to show that the other, nonbreaching party failed to mitigate their damages.

In order to raise this defense, the breaching party must show:

  1. the reasonable actions that the nonbreaching party should have taken,
  2. that those actions would have reduced damages, and
  3. the actual amount the damages incurred would have been reduced by taking the actions.

If all three are shown, then the damages will be reduced accordingly.

Related Article: Pennsylvania Commercial Law: Breach of Contract and Damages

If you’d like to have your case reviewed by our Pennsylvania and New Jersey commercial and business litigation lawyers, call 215.925.4451. Our lawyers are available for a free, no obligation legal consultation.

The  lawyers at Schwartz & Blackman handle cases in the Pennsylvania and New Jersey area:

  • PA: Berks County, Bucks County, Chester County, Delaware County, Montgomery County, Philadelphia County, Allentown, Lehigh Valley, Norristown, Philadelphia
  • NJ: Atlantic County, Burlington County, Camden County, Gloucester County, Mercer County, Middlesex County, Monmouth County, Camden, Cherry Hill, New Jersey shore cities

*This website does not provide legal advice. Every case is unique and it is important to get a qualified, expert legal opinion prior to making any decisions about your case.  See the full disclaimer at the bottom of this page.

© 2017 Schwartz and Blackman
Two Liberty Place, 50 South 16th Street, Fl 28, Philadelphia, PA 19102 | PHONE: (215) 925-4451 | FAX: (215) 574-1200

*DISCLAIMER: This website does not create any attorney-client relationship or provide legal advice. The lawyers at Schwartz and Blackman provide legal advice only after accepting a case. It is imperative that any action taken is done on advice of counsel. Since each case is unique, discussion of prior outcomes and settlements in past cases is no guarantee of a similar outcome in current or future cases. The use of contact forms on this site does not establish any attorney-client relationship. Confidential or time-sensitive information should not be sent through them. The AV rating of Martindale-Hubbell, Super Lawyers and organizations that rate attorneys are not designations that have been approved by the State Supreme Courts or the American Bar Association. The ratings and opinions reflect members of the Bar Association and the Judiciary. PRIVACY POLICY

Web Design and SEO legal website content/attorney website content by LCL Web Solutions, Legal Web Content for Lawyers by Lawyers

Suffusion theme by Sayontan Sinha