Thus it need not act in any way that will damage its commercial reputation just to reduce the non-performing party's liability. The goods supplied by E are not of proper quality. Although under the terms of its contract with F, D could require F to take the goods without a price reduction, this would be unreasonable in the light of their long-standing business relationship and D gives F a reduction of price. The aggrieved party should not incur further expenditure needlessly and should take steps to reduce its loss. K contracts to build a yacht to L's special design.
L repudiates the contract.
C. Expenses incurred in mitigating loss Frequently the aggrieved party will have to incur some further expenditure in order to mitigate its loss. This incidental expenditure is also recoverable provided it is reasonable. X agrees to buy Y's chalet, which Y had advertised widely. Later X repudiates the contract. Y decides to make a cover transaction.