Question: Which of the following is true regarding the duty to mitigate damages?

Options:

1. The non-breaching party has no obligation to mitigate damages
2. The non-breaching party must take reasonable steps to reduce their losses
3. The breaching party must mitigate damages
4. Mitigation is only required in tort cases

Correct Answer: The non-breaching party must take reasonable steps to reduce their losses

Solution:

The non-breaching party has a duty to take reasonable steps to mitigate their damages after a breach occurs.