Compensable Expense

/ˌkɒmpənˈseɪbəl ɪksˈpɛns/

Definitions

  1. (n.) An expense eligible for reimbursement under a contract or legal provision.
    The contractor submitted all compensable expenses for review before payment.
  2. (n.) Costs that a party must pay as part of damages or indemnification.
    The settlement covered all compensable expenses arising from the breach.

Forms

  • compensable expense
  • compensable expenses

Commentary

Typically used in contracts to specify which costs may be recovered; define clearly to avoid ambiguity in reimbursable clauses.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

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