BRITISH WESTINGHOUSE ELECTRIC CO LTD v UNDERGROUND

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The fundamental basis for the assessment of damages for breach of contract is to provide compensation for the pecuniary loss which naturally flows from the breach, but this first principle is qualified by a second which imposes on a plaintiff the duty of taking all reasonable steps to mitigate the loss consequent, on the breach and debars him from claiming in respect of any part of the damage which is due to his neglect to take such steps. This second principle, however, does not impose on the plaintiff an obligation to take any step which a reasonable and prudent man would not ordinarily take in the course of his business. Furthermore, the transaction which, it is claimed, should be taken into account as mitigation must be one arising out of the subject-matter of the contract and the consequences of the breach and not be res inter

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