Cover Costs Clause Samples

The "Cover Costs" clause requires one party to pay for certain expenses incurred by the other party, typically in specific situations outlined in the contract. For example, if a supplier fails to deliver goods and the buyer must purchase replacements at a higher price, the supplier may be obligated to cover the additional cost. This clause ensures that the financial burden of unexpected or extra costs resulting from a breach or failure to perform is fairly allocated, protecting the non-breaching party from undue loss.