Duty to act reasonably in mitigating losses not onerous

MANTON HIRE v ASH MANOR CHEESE (CA) [2013]

The Court of Appeal (CA) considered whether a customer under a hire agreement for a fork lift truck had failed to mitigate its losses, by refusing to accept an unclear proposal made by the supplier to remedy a fundamental problem with the original truck supplied which meant that it was not fit for purpose. All contracting parties are under an implied obligation to take reasonable steps to mitigate their loss where they are the victims of a breach of contract. In commercial B2B contracts this will often take the form of accepting a reasonable offer from the party in default offering to take steps to rectify the breach.

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