What does an innocent party need to demonstrate to receive damages for a breach of contract?

To receive damages for a breach of contract, an innocent party must demonstrate evidence of efforts to mitigate damages. This principle of mitigation requires that the injured party take reasonable steps to limit their losses after a breach occurs. Courts generally will not award damages that could have been avoided with reasonable efforts. Therefore, the innocent party must show that they have actively attempted to reduce the negative financial impact stemming from the breach, which is crucial for justifying the damages they claim.

While proving all losses incurred might be necessary for determining the extent of the damages, it is insufficient on its own if the innocent party has not made efforts to mitigate those losses. Similarly, preliminary agreements, while potentially relevant to understanding the context of the contract, do not play a direct role in establishing the claim for damages. Documentation of the contract is also important for proving the existence of a contractual obligation, but it does not address the essential requirement of demonstrating actions taken to mitigate after a breach has occurred.