Equine World enters into a contract with FabuloSales to provide Equine World with a plan to repurpose its marketing strategy. If FabuloSales breaches the contract, Equine World has a duty to
A) reduce the damages that Equine World might otherwise suffer.
B) reduce the loss that FabuloSales might otherwise suffer.
C) punish FabuloSales and deter others from similar acts.
D) take no action.

Question

Equine World enters into a contract with FabuloSales to provide Equine World with a plan to repurpose its marketing strategy. If FabuloSales breaches the contract, Equine World has a duty to
A) ​reduce the damages that Equine World might otherwise suffer.
B) ​reduce the loss that FabuloSales might otherwise suffer.
C) ​punish FabuloSales and deter others from similar acts.
D) ​take no action.

Quizplus · Accepted Answer

If FabuloSales breaches the contract, Equine World has a duty to mitigate or reduce the damages they might suffer. This means that Equine World must take reasonable steps to minimize the losses resulting from FabuloSales' breach of contract. Simply taking no action is not an option for Equine World. Punishing FabuloSales or reducing the losses of FabuloSales is not within Equine World's duty in this situation.

Equine World Enters into a Contract with FabuloSales to Provide