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Simple English definitions for legal terms
cost of completion
Read a random definition: Court of Appeals for Veterans Claims
A quick definition of cost of completion:
Cost of completion refers to the amount of money needed to finish a project or contract. It is often used in contract law as a type of compensation when one party intentionally breaks a contract. For example, if a company breaks a lease contract to restore land, the cost of completion would be the amount of money needed to make the land level again. Different courts may award different types of damages, but cost of completion is one option.
A more thorough explanation:
Definition: Cost of completion refers to the expenses required to finish a project, promise, or contract. It is a type of damages awarded to a party in a contract that another party intentionally breached.
For example, in the case of Groves v. John Wunder Co., a company broke a lease contract to restore land after removing gravel from it. The court awarded Groves the cost of completion to make the land level again. However, some other courts may use different types of damages that would award only a fraction of the cost to complete the contract.
The cost of completion is an important concept in contract law as it ensures that the party who was wronged is compensated for the full amount required to complete the project or contract. This helps to discourage parties from intentionally breaching contracts and ensures that justice is served.