Possible minimization Sample Clauses

The 'Possible minimization' clause establishes an obligation for parties to take reasonable steps to reduce or mitigate potential losses, damages, or liabilities that may arise under the agreement. In practice, this means that if an event occurs that could lead to a loss, the affected party must act promptly and sensibly to limit the extent of the harm, such as by seeking alternative suppliers or taking corrective action. This clause serves to prevent unnecessary escalation of damages and ensures that both parties act responsibly to minimize the impact of adverse events, thereby allocating risk more fairly and reducing potential disputes over preventable losses.