Flashcards Studio

A written contract for the sale of a titled parcel of land priced at ₱5,000,000, payable on delivery, is executed by A (buyer) and B (seller). A breaches by failing to pay within 30 days. Seven weeks after the breach, B resells the land to a third party for ₱4,400,000, incurring ₱180,000 in incidental costs (advertising, title transfer, broker’s commission). B sues A for damages. (a) Identify the doctrine governing the injured party’s duty to mitigate damages. (b) Evaluate whether B’s mitigation by resale was reasonable under the circumstances and how that affects the damages recoverable from A. (c) State the proper measure of damages and compute the amount recoverable by B.