Costs-Permissible and Impermissible Clause Samples

The 'Costs - Permissible and Impermissible' clause defines which types of expenses are allowed to be charged or reimbursed under an agreement and which are not. Typically, this clause will list categories of costs that are acceptable, such as reasonable travel expenses or materials directly related to the project, while explicitly excluding others like entertainment or personal expenses. Its core function is to provide clear guidance on financial boundaries, preventing disputes over reimbursement and ensuring that only appropriate costs are incurred and paid for by the parties involved.