MEANING OF “OUTSIDE COST”

Taranaki Daily News, 2 June 1934, Page 5

MEANING OF “OUTSIDE COST”

INTERPRETATION OF CONTRACT. By Telegraph—Press Association. Wellington, May 31. . An interpretation of the words “outside costs” in an agreement for the building of certain premises at Hastings was given by the Chief Justice in the Supreme Court to-day. Plaintiffs were Trevor Bros., contractors, and the defendants Westerman and Co., drapers. The question was whether the words applied to the costs of the employees or the costs of the contractors. His Honours’ decision was in favour, of the latter. The owners stipulated that the total net cost should not exceed £11,291, which was the same figure as the previously, mentioned figure of outside costs. To' read the term as meaning outside gross costs •would involve the necessity of entirely disregarding the word net wherever it occurred in the portion of the agreement which His Honour had quoted.