Lexikon

Duty to mitigate loss

The duty to mitigate loss means taking reasonable steps to prevent an existing loss from becoming greater. Under section 1304 ABGB, the injured party’s own conduct in causing or increasing the loss can affect the compensation payable.

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In tourism law, mitigation may include responding appropriately after an accident or deficient service and avoiding further disadvantages. The reasonable step depends on the circumstances, safety considerations, available alternatives and the service agreed in the contract.

For package travel, the duty to mitigate loss is separate from the traveller’s duty under section 11 PRG to notify the organiser of a travel defect without undue delay. Notice gives the organiser an opportunity to provide a remedy and supports the later assessment of a price reduction or damages. No blanket reduction follows from a missed step, the specific sequence of events must be assessed.

For the legal assessment, preserve the sequence of events, the defect or accident, the steps taken, receipts and communications with the organiser or service provider. The tourism contracts and liability topic explains the relevant contractual relationships. The duty to ensure safety entry focuses instead on the safety measures expected from operators and organisers.