Obligation to Mitigate Losses Clause Samples
The Obligation to Mitigate Losses clause requires a party that suffers harm or loss due to a breach of contract to take reasonable steps to minimize the resulting damages. In practice, this means the affected party cannot simply allow losses to accumulate unchecked; for example, if a supplier fails to deliver goods, the buyer should attempt to source replacements elsewhere to reduce their financial impact. This clause ensures that damages are kept to a reasonable minimum and prevents the non-breaching party from recovering losses that could have been avoided through reasonable action.
POPULAR SAMPLE Copied 1 times
Obligation to Mitigate Losses. Each of the Parties agrees to use its commercially reasonable efforts to mitigate its respective Losses upon and after becoming aware of any event or condition that would reasonably be expected to give rise to any Losses that are indemnifiable hereunder, provided that no Party shall be obligated to mitigate its Losses by reducing its (or its Affiliates) Taxes.
Obligation to Mitigate Losses. When payment is made for damage caused to wagons, the parties to the contract shall abide by the general principles associated with the obligation to limit the resulting losses.
Obligation to Mitigate Losses. Buyer Indemnified Parties and Seller Indemnified Parties shall use their commercially reasonable efforts to mitigate any actual or potential Loss, in each case to the same extent as it would if such Loss were not subject to indemnification pursuant to the terms of this Agreement.
Obligation to Mitigate Losses. 31 8.4 Tax Consequences of Indemnification ............................................................ 31 8.5 Procedures ....................................................................................................... 31 8.6 Limitations on Indemnification ....................................................................... 32 8.7 Survival of Indemnification Obligations ......................................................... 33 8.8 Exclusive Remedy ........................................................................................... 33
Obligation to Mitigate Losses. Parent shall use its commercially reasonable efforts to mitigate any Losses in connection with an indemnity claim made pursuant to this Section 7.2 with the scope to be as required by applicable law.