Thursday, October 6, 2011

Natural of loss and expense

  • Actual losses of money ( which ought to been received ) as a result of circumstances giving rise to entitlement
  • Actual expenditure of money which ought not to have been made occasioned as a direct result of the same circumstances . " The primary meaning of thje word expense is actual disbursements."
  • Note that in all cases of loss and expense the contractor is under a duty in law to "mitigate his loss " so far as it may be reasonable for him to do so .
  • For example if a contractor is issued with a variation order which necessitates plant lying idle for som days , he ( the contractor ) would not be entitled simply to accept the situation , but would be bound to make reasonable endeavours to use the plant productively elsewhere or to persuade the plant owner to accept an early return .

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