Implicit Cost

/ɪmˈplɪsɪt kɒst/

Definitions

  1. (n.) A non-explicit, opportunity cost representing the value of foregone alternatives in legal and economic decision-making contexts.
    The implicit cost of using company-owned equipment instead of renting was considered during contract negotiations.

Forms

  • implicit cost

Commentary

Implicit costs often arise in evaluating the economic impact of legal decisions, especially in contract, property, and corporate law settings.

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.

Draft confidently with Amicus

Create, negotiate, and sign agreements in one secure workspace—invite collaborators, track revisions, and keep audit-ready records automatically.

Open the Amicus app