WJEC A-Level Law 603-1978-1
Law Making in Wales and the UK
Delegated Legislation
Statutory Interpretation
Judicial Precedent
The Civil Courts and Dispute Resolution
The Criminal Process and the Criminal Courts
Legal Personnel and the Judiciary
Access to Justice and Funding
Tort: Rules and Theory
Tort: Negligence
Tort: Occupiers' Liability
Tort: Remedies
Human Rights: Rules and TheoryHuman rights
Human Rights: Key Convention ProvisionsHuman rights
Human Rights: RestrictionsHuman rights
Human Rights: EnforcementHuman rights
Human Rights: Protection and ReformHuman rights
Contract: Rules and TheoryContract
Contract: FormationContract
Contract: TermsContract
Contract: Misrepresentation and DuressContract
Contract: DischargeContract
Contract: RemediesContract
Criminal Law: Rules and TheoryCriminal
Criminal Law: General Elements of LiabilityCriminal
Criminal Law: Offences Against the PersonCriminal
Criminal Law: Property OffencesCriminal
Criminal Law: DefencesCriminal
Criminal Law: Preliminary OffencesCriminal
Contract: Remedies
Mitigation, agreed damages and penalties
- 3 things to know
- A2 Units 3 and 4
Overview
Duty to mitigate, liquidated damages clause and penalty clause.
What you need to know
Answer each one before you reveal it.
What did British Westinghouse v Underground Electric Railways (1912) decide about the benefits of mitigation?
When can a defendant rely on the claimant's own carelessness to reduce contractual damages?
Questions from this subtopic
Each one with the model answer underneath.
- 1
What is the duty to mitigate?
Model answer
The injured party must take reasonable steps to reduce the loss flowing from the breach, and cannot recover for any part of the loss that reasonable steps would have avoided.
- 2
What did British Westinghouse v Underground Electric Railways (1912) decide about the benefits of mitigation?
Model answer
The replacement turbines were so much more efficient than those contracted for that the buyer was better off, and the savings had to be brought into account, reducing the damages for the defective machines.
- 3
What did Pilkington v Wood (1953) decide about the extent of the duty to mitigate?
Model answer
It decided that the injured party need not take unreasonable steps, so a purchaser given defective advice on title was not required to bring uncertain and expensive litigation against the vendor to reduce his loss.
- 4
Who bears the burden of proving a failure to mitigate?
Model answer
The defendant must prove that the claimant acted unreasonably, because the claimant is not required to justify every choice made in the difficult position the breach created.
- 5
Does the duty to mitigate arise before an anticipatory breach has been accepted?
Model answer
No, the innocent party is entitled to wait and keep the contract alive, so the duty to mitigate arises only once the repudiation has been accepted and the contract brought to an end.
- 6
When can a defendant rely on the claimant's own carelessness to reduce contractual damages?
Model answer
Apportionment for contributory negligence is available only where the defendant's liability in contract is the same as, and concurrent with, a liability in the tort of negligence, and not where the contractual duty is strict.
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