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Simple English definitions for legal terms
mitigation cost
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A quick definition of mitigation cost:
Mitigation cost is the money spent to reduce harm or damage caused by something. For example, if a company pollutes a river, they may have to spend money to clean it up and prevent further pollution. This cost is called mitigation cost. It is like paying to fix a mistake you made.
A more thorough explanation:
Definition: Mitigation cost refers to the expenses incurred by a party to reduce an existing harm so that further damage can be halted, slowed, or diminished.
Example: If a company is found to be polluting a river, they may have to pay mitigation costs to clean up the pollution and prevent further damage to the environment.
This example illustrates how mitigation costs are expenses incurred to reduce harm. In this case, the harm is pollution, and the mitigation cost is the expense of cleaning up the pollution to prevent further damage to the environment.
Another example of mitigation cost could be a homeowner installing a fence to prevent their dog from escaping and causing harm to others. The cost of the fence would be a mitigation cost to prevent harm.
Overall, mitigation costs are expenses incurred to reduce harm and prevent further damage.