costs and expenditures
Definition
Costs and expenditures refers to the money a party spends in connection with a legal dispute or business transaction, including things like court filing fees, attorney fees, and other out-of-pocket expenses. When this phrase appears in a contract, it typically spells out who is responsible for paying these expenses if something goes wrong or if a dispute ends up in court.
Example
If your contract says the losing party must pay all costs and expenditures, and you lose a lawsuit over an unpaid invoice, you could be on the hook for both your own lawyer's fees and the other side's legal bills.
Watch Out
Before signing any contract, make sure you understand exactly which costs and expenditures you might be responsible for, because these amounts can easily exceed the value of the original dispute.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.