What does "duty to mitigate" refer to in the context of damages?

The concept of "duty to mitigate" refers specifically to the obligation of a party who has suffered damages to take reasonable steps to minimize those losses. This principle is grounded in the idea that a victim of a tort or a breach should not be allowed to recover damages that could have been avoided with reasonable effort.

For example, if a person suffers an injury due to the negligence of another, they have a duty to seek appropriate medical treatment and follow any instructions to aid in recovery. Failing to do so could result in their recovery of damages being reduced, as they did not take the steps that a reasonable person would take under similar circumstances to limit their losses.

In contrast, other options may address aspects of legal processes or compensation but do not capture the essence of what the duty to mitigate entails. For instance, the right to compensation for all losses does not consider the obligation to minimize those losses, and the duty to report injuries promptly or seek legal counsel deals with procedural aspects rather than the proactive measure of minimizing those damages.