Oregon Construction Contractors (CCB) Practice Test

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To recover damages in a breach of contract, what must the non-breaching party prove?

  1. The amount was reasonably mitigated

  2. The other party is at fault

  3. The breach occurred

  4. The damages are not significant

The correct answer is: The amount was reasonably mitigated

To recover damages in a breach of contract, the non-breaching party must indeed show that the amount was reasonably mitigated. This principle emphasizes that a party suffering a loss has a duty to take reasonable steps to minimize or mitigate their damages resulting from the breach. If the non-breaching party fails to do so, they may not be able to recover the full extent of the damages they claim. This obligation is grounded in the legal concept of preventing unnecessary losses and encourages parties to act responsibly and reasonably in response to a breach. By proving that they took adequate steps to mitigate damages, the non-breaching party demonstrates not only the existence of harm but also a commitment to minimize that harm as much as possible. The other aspects, such as proving fault, the occurrence of the breach, or the significance of the damages, while relevant to specific circumstances, do not directly address the overarching responsibility to mitigate losses. Focusing on mitigation aligns well with the legal framework that aims to ensure fairness and accountability in contractual relationships.