In Common Law and UN convention on the intenational
contract for sale of goods ( cisg )
the " mitigation rule " or " the aggrived party's duty to avert or
minimize his loss " is a well known rule.
According to this rule, used as a defense by the
defendant in both contractual and tortious cases, the plaintiff (
injured party ) has a duty ( obligation ) to avert or minimize his loss
or its consequences when he suffered through breach of contract or
tortious act.
If the defendant succeds to prove any failure on the
part of the plaintiff, he will be acquitted from liability for avoidable
losses. If the plaintiff takes the reasonable steps, he will be entitled
to any reasonable expenses spent, when succeeding to mitigate.
The rule is accepted in Iranian laws in torts :
islamic punishment code has applied it in some articles and it can be
traced in other specific laws.
The most important text among the Iranian laws by
which the mitigation rule has been codified, is the insurance code, but
in contractual responsibility cases this rule could not be applied,
because the general sanction for breach of contract in both islamic and
Iranian law is specific performance, by which the innocent party is
entitled to insist on existence
of contract and enforcement of contractual
obligations.
This is the difference between Iranian law and
common law. In common law this sanction is a secondary remedy and is
applied with the discretion of the court. In common law the first
sanction for breach of contract is recovering damages.
I have tried throughout my thesis to elaborate on
the idea that the most appropriate basis for the mitigation rule is
causation between the plaintiff's failure to take reasonable steps and
avoidable losses.