“ Even in case the option is exercised, the language quoted leaves contractor and surety liable for other damages; a fortiori, the intent is to preserve their liability in case the option is not exercised.
We have not overlooked the familiar rule that a party suffering loss from breach of contract ought to do what a reasonable man would to mitigate his loss. ”

“ Their rights and liabilities between themselves, being already fixed by the complete breach of the Boggs agreement, were not to be affected by any subsequent and independent transaction between the government and third parties.
Is the government, then, remediless against the Guaranty Company for the default of its principal? The contract was entire and indivisible; a completed building was the thing bargained for; the partial payments were not to be considered as an acceptnace of any work or material; they were to be '80 per centum of the value of the work executed, . . . ”

“ We do not think article 4 can properly be so construed as to restrict the government to the remedy there indicated in the event of default by the contractor, or to exclude recovery of the actual damages directly attributable to such default if, in the reasonable exercise of its rights, the government determines not to complete the building. ”

“ Upon this state of facts, the Guaranty Company's liability clearly became fixed upon the occurrence of the default; and it was not released by the failure of the government to have the same work completed in accordance with article 4, unless, by the fair meaning of the agreement, the government was obliged to rebuild, or at least was excluded from recovering damages upon any other basis than a completion of the building, as permitted by that article. ”

“ United Security Life Ins. & T. Co. 76 N. J. L. 585, 593, 21 L.R.A. (N.S.) 691, 72 Atl. 301. And the practice respecting exceptions in the Federal courts is unaffected by the conformity act, § 914, Rev. Stat. Comp. Stat. ”