Contract and Commercial Law Act 2017

Contracts legislation - Frustrated contracts - Expenses

65: Estimates of expenses

You could also call this:

“Courts can count extra costs when deciding how much money was spent on a contract”

When a court is figuring out how much money someone spent because of a contract, they can include more than just the obvious costs. They can also add in what they think is a fair amount for overhead expenses. Overhead expenses are things like rent or electricity that a business needs to pay to keep running. The court can also include the cost of any work or services that the person did themselves.

This rule applies to the situations described in sections 61 to 64 of the law. It’s important to know that this is just one way the court can calculate expenses. There might be other ways too, because this rule doesn’t limit what’s said in those sections.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844151.


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Part 2 Contracts legislation
Frustrated contracts: Expenses

65Estimates of expenses

  1. For the purposes of sections 61 to 64, in estimating the amount of expenses incurred by a party to the contract, the court may include the amount that appears to be reasonable for—

  2. overhead expenses; and
    1. any work or services performed by that party.
      1. Subsection (1) does not limit sections 61 to 64.

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