Facts: Tolamika Ventures Ltd. aimed to sell property to 1338642 B.C. Ltd. for $2,225,000. 1338642 B.C. Ltd. failed to complete the purchase by the agreed date and made a reduced offer of $1,950,000, which Tolamika rejected. Tolamika later sold the property for $1,600,000 after relisting.
Issue: The main legal issue was whether Tolamika Ventures Ltd. failed to mitigate its losses after 1338642 B.C. Ltd.'s breach of contract by not accepting the reduced offer for the property.
Court’s Ruling: The court found that Tolamika Ventures Ltd. did not take reasonable steps to mitigate its losses by refusing the reduced offer of $1,950,000 from 1338642 B.C. Ltd., considering the declining real estate market.
Costs/Damages Awarded: Tolamika’s loss was quantified at $311,559.27, based on the premise that it should have mitigated its loss by accepting the reduced offer after the breach of contract.
