Common use of Obligation to mitigate/betterment Clause in Contracts

Obligation to mitigate/betterment. (a) Each party to this Agreement will take reasonable steps to mitigate that party's losses, damages, liabilities, costs and expenses, and a party's entitlement to recover losses, damages, liabilities, costs and expenses will be determined on the basis that the party should have observed the obligation to mitigate. (b) Where a party restores, repairs or replaces a damaged asset to prevailing standards in the most cost efficient way available and that repair, restoration or replacement results in improved functionality of an asset, such improved functionality will not be regarded as a betterment and no reduction or adjustment of the costs of repair, restoration or replacement will be made on that account.

Obligation to mitigate/betterment. (a) Each party to this Agreement will take reasonable steps to mitigate that party's losses, damages, liabilities, costs and expenses, and a party's entitlement to recover losses, damages, liabilities, costs and expenses will be determined on the basis that the party partparty should have observed the obligation to mitigate. (b) Where a party restoresrestores or, repairs or replaces a damaged asset to prevailing standards in the most cost efficient way available and that repairrepair or, restoration or replacement results in improved functionality of an asset, such improved functionality will not be regarded as a betterment and no reduction or adjustment of the costs of repairrepair or, restoration or replacement will be made on that account.