Question

Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty toA. continue to store the fruit until Produce pays.B. do whatever is reasonable to minimize the damages.C. dispose of the fruit immediately.D. set an example to deter similar misconduct in the future.

Answer 1

Answer:

B. do whatever is reasonable to minimize the damages.

Explanation:

If Ochre holds one ton of perishable fruit in storage for Produce Corporation If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to do whatever is reasonable to minimize the damages.

To mitigate damages implies that a person who claims damages as a result of an alleged wrongful act on the part of another has a duty under the law to "mitigate" those damages;

mitigation means reduction, so in this case, it means, to take advantage of any reasonable opportunity Ochre may have had under the circumstances to reduce or minimize the loss or damage.

Answer 2

Answer:

B. do whatever is reasonable to minimize the damages.

Explanation:

Under the doctrine of mitigation of damages, it requires that victims of contract breaches should to whatever they can in minimizing damages. In this scenario, Produce corporation breached the contract by not paying for storage. Under the doctrine, Ochre are expected to do anything they can in minimizing damages. It means that, victims of the breach, in this case Ochre is expected to mitigate both the effect of the breach and their own personal losses. Therefore, the victim needs to take hold of any good chance he may have had under the circumstances to reduce the damage. Also known as doctrine of avoidable consequences.

Here, actions that may get taken by Ochre to reduce losses may include by not rest on selling of the fruits and so on.