Rig Heli-Pads, Inc., enters into a contract to employ Scott as an on-site project manager for two years. If Rig breaches the contract, Scott has a duty to
A) do nothing.
B) reduce the damages that Scott might otherwise suffer.
C) rescind the contract with Rig.
D) punish Rig and set an example to deter others from similar acts.

Question

Rig Heli-Pads, Inc., enters into a contract to employ Scott as an on-site project manager for two years. If Rig breaches the contract, Scott has a duty to
A) ​do nothing.
B) ​reduce the damages that Scott might otherwise suffer.
C) ​rescind the contract with Rig.
D) ​punish Rig and set an example to deter others from similar acts.

Quizplus · Accepted Answer

In the event of a breach of contract, Scott has a duty to mitigate (reduce) the damages he might otherwise suffer. This means that he must take reasonable steps to minimize the harm caused by Rig's breach, such as seeking new employment or finding other sources of income. Scott is not required to rescind the contract or punish Rig, but rather to protect his own interests by minimizing his losses.