Question
Paolo owns an apartment complex in a poor area of town. The building contains a large number of identical apartments. Because demand is low, there
Paolo owns an apartment complex in a poor area of town. The building contains a large number of identical apartments. Because demand is low, there are always several empty apartments. Paolo leased an apartment to Dhalia for one year at a rent of $1000 per month. After two months, however, Dhalia broke the lease, moved out, and refused to pay the remaining rent. The next day, Paolo convinced Xavier to live in the apartment that Dhalia had occupied. In doing so, did Paolo mitigate the loss that resulted from Dhalia's breach? Would your answer be the same if Dhalia had introduced Xavier to Paolo? What if Dhalia had introduced Xavier to Paolo only because she was moving out? In answering those questions, place yourself in Paolo's position and ask whether Xavier's contract really made up for the loss that Dhalia caused when she broke her lease.
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