Saturday, December 31, 2011

Natural of loss and expense


  • Actual losses of money ( which ought to have been received ) as a result of the circumstance sgiving rise to entitlement 
  • Actual expenditure of money which ought not to have been made occasioned as a direct result of the same circumstance . " The primary meaning of the word expense is actual disbursemnents '. 
  • 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 some days , he ( the contractor ) would not be entitled simply to accept the situation , but would be bouind 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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