What is it?
This phrase functions primarily as a contractual clause type or a remedial provision within litigation rules; it controls the scope of financial recovery available after a dispute concludes.
all costs
Contract LawLegal glossary term
Quick answer
What does all costs mean?
All costs usually means every expense incurred during a legal process or contract fulfillment. In contracts, it matters because it dictates what you can recover beyond just basic damages awarded in court. Before signing, check if 'all' is specifically defined to limit the scope.
Definitions
What is all costs?
Legal Definition
All costs describes every expense incurred by a party during a legal proceeding or contract performance. This phrase grants the right to recover specific outlays from another party, often covering more than just basic damages. Practitioners must determine whether 'all costs' is intended to be limited (e.g., litigation fees) or comprehensive.
Plain-English Translation
All costs covers every single fee on your permission slip—the ink cost, the paper cost, and even the time it took the teacher to grade it. It means you get paid back for everything involved in getting that permission granted.
Term context
How all costs shows up in legal documents
Why does it matter?
Ignoring 'all costs' can lead to an award being limited only to principal damages, leaving you footing substantial bills. The losing party usually bears the risk if this term is poorly defined in favor of the prevailing party.
When does it matter?
This term often triggers when a judgment is entered following litigation or upon the completion of a contract milestone that necessitates payment for incurred expenses. It becomes relevant immediately after the expense is documented.
Where is it usually seen?
You see 'all costs' frequently specified in settlement agreements, within breach-of-contract clauses, and as part of damage awards granted by state trial courts.
Who is affected?
The prevailing creditor gains the right to recover every bill presented under this term. Conversely, the losing debtor risks having their entire outlay scrutinized and potentially reduced by a judge's ruling.
How does it work?
First, one must catalog all expenditures—this includes attorney hourly rates, filing fees, expert witness invoices, etc. Then, the contract or court rule dictates *which* costs are covered under 'all.' Finally, the recovering party presents itemized documentation to prove each expense meets the standard.
Contract relevance
Why all costs matters in contracts
Ignoring 'all costs' can lead to an award being limited only to principal damages, leaving you footing substantial bills. The losing party usually bears the risk if this term is poorly defined in favor of the prevailing party.
Document context
Where all costs appears in documents
| Document type | Section | Why it matters |
|---|---|---|
| Contract | Governing Law/Indemnification Section | Defines who pays for litigation expenses. |
| Pleading Document (e.g., Complaint) | Prayer for Relief section | Requests recovery of all incurred legal outlays from the defendant. |
| Statutory Agreement | Damages clause | Specifies that the non-breaching party gets back every expense related to the breach. |
| Settlement Agreement | Release/Covenant section | Confirms which party bears responsibility for past and future expenditures. |
Contract language
Common contract wording
| Contract wording | Plain-English meaning | What to check |
|---|---|---|
| Recovery of all costs, including attorney's fees | Every single money outlay is covered | Ensure 'attorney's fees' are explicitly included. |
| Indemnification for all costs arising from the breach | You get reimbursed for everything related to the failure | Verify if this covers only defense or also actual losses. |
| Costs shall be borne by the breaching party in full | The wrongdoer pays every single bill | Look for carve-outs that might exclude specific types of spending. |
Red flags
Red flags to watch for
'All costs' without definition
Ambiguity forces costly litigation to determine scope (e.g., does it include administrative fees?)
What to check: Insist on a defined list or clear boundary.
Excluding 'attorney's fees' from 'all costs'
This is a common trap; basic damages might be covered, but the lawyer bills are not guaranteed recovery.
What to check: Confirm if legal representation expenses are specifically carved out or included.
'Reasonable and necessary' costs only"
This standard allows a judge to reduce the claim amount significantly below what you actually paid.
What to check: Determine whose judgment of 'reasonable' will prevail.
Vague mention in general terms
If it appears once in a boilerplate clause without elaboration, its meaning is uncertain.
What to check: Demand clarification or linkage to a defined term elsewhere.
Wording examples
Clearer wording examples
Vague wording
All costs
Clearer wording
All reasonable and necessary expenses, including attorneys' fees and court filings
Vague wording
Costs and expenses
Clearer wording
All outlays, encompassing legal representation, expert witness fees, and administrative charges
Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.
Pre-signature checklist
What to check before signing
1
Is 'all costs' explicitly defined in a Definitions section?
2
Does it cover pre-judgment or post-judgment expenses?
3
Are attorney's fees specifically included under the umbrella of 'all costs'?
4
Are there any stated limitations (e.g., excluding administrative filings)?
5
Does the term apply to both contract performance and litigation?
6
Does it cover internal preparation time/staffing costs, or just external bills?
Party impact
How all costs affects each party
| Party | What this party should check |
|---|---|
| Buyer | Check if you recover *your* costs regardless of who caused the breach. |
| Seller | Ensure that your obligation is limited only to costs directly resulting from *their* specific failure. |
| Tenant | Verify if 'all costs' covers not just rent payments, but also repairs and late fees. |
| Lender | Confirm whether the clause forces the borrower to cover all associated legal defense costs. |
Comparison
all costs vs similar terms
| Related term | Plain meaning | Main difference from all costs |
|---|---|---|
| Damages | Compensation for actual financial loss (e.g., lost profits); All Costs is often a *type* of damage recoverable. | Damages are the harm; All Costs is the expense incurred fixing or proving that harm. |
| Attorney's Fees | The billable time spent by lawyers; This is usually a subset of 'All Costs'. | If you only get 'Damages,' you might not recover these fees unless specifically stated. |
| Liquidated Damages | A pre-agreed, fixed sum representing expected loss; All Costs covers actual incurred expenses that may exceed this agreed amount. | Liquidated Damages are the estimate; All Costs is the receipt. |
Missing or vague
If all costs is missing or vague
If 'all costs' remains undefined in your agreement, a dispute will inevitably arise over what exactly gets reimbursed.
For example, one party might argue it only covers court filing fees, while the other insists it must include internal accounting labor.
Another common fight concerns whether it covers expenses incurred *before* the breach was even discovered.
Document map
Document section map
| Contract section | What to inspect |
|---|---|
| Definitions Section | Look for a specific definition of 'Costs' or 'All Costs'. |
| Indemnification Clause | This section dictates who pays under what circumstances. Check for scope limitations here. |
| Remedies/Damages Clause | This is where the right to recover expenses is usually established alongside monetary damages. |
| Governing Law Section | While not always direct, this clause dictates which jurisdiction's rules interpret 'all costs'. |
Visual model
Understand all costs fast
An explainer image has not been generated for this term yet.
01
A borrower sues a bank; if the loan agreement specifies 'all costs,' the borrower can recover not just lost interest but also appraisal fees and court filing charges from the bank.
02
During construction, if the contract mandates payment of 'all costs' upon final inspection, the general contractor receives reimbursement for subcontractor labor plus unforeseen material overages.
03
In a personal injury case, the plaintiff’s lawyer seeks judgment covering 'all costs,' meaning they want compensation for medical co-pays and expert depositions alongside pain and suffering.
Questions & answers
Common questions about all costs
What does all costs mean?
All costs usually means every expense incurred during a legal process or contract fulfillment. In contracts, it matters because it dictates what you can recover beyond just basic damages awarded in court. Before signing, check if 'all' is specifically defined to limit the scope.
What is all costs in plain English?
All costs covers every single fee on your permission slip—the ink cost, the paper cost, and even the time it took the teacher to grade it. It means you get paid back for everything involved in getting that permission granted.
Why does all costs matter in a contract?
Ignoring 'all costs' can lead to an award being limited only to principal damages, leaving you footing substantial bills. The losing party usually bears the risk if this term is poorly defined in favor of the prevailing party.
When does all costs apply?
This term often triggers when a judgment is entered following litigation or upon the completion of a contract milestone that necessitates payment for incurred expenses. It becomes relevant immediately after the expense is documented.
Where does all costs appear in documents?
You see 'all costs' frequently specified in settlement agreements, within breach-of-contract clauses, and as part of damage awards granted by state trial courts.
Who is affected by all costs?
The prevailing creditor gains the right to recover every bill presented under this term. Conversely, the losing debtor risks having their entire outlay scrutinized and potentially reduced by a judge's ruling.
How does all costs work?
First, one must catalog all expenditures—this includes attorney hourly rates, filing fees, expert witness invoices, etc. Then, the contract or court rule dictates *which* costs are covered under 'all.' Finally, the recovering party presents itemized documentation to prove each expense meets the standard.
What happens if all costs is missing or vague?
If 'all costs' remains undefined in your agreement, a dispute will inevitably arise over what exactly gets reimbursed. For example, one party might argue it only covers court filing fees, while the other insists it must include internal accounting labor. Another common fight concerns whether it covers expenses incurred *before* the breach was even discovered.
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Wikipedia
All costs
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Where all costs connects to real contract work
This layer links the term to nearby glossary entries, document use cases, and contract-risk guides so readers can move from definition to context without dead ends.
9nodes
Glossarypaymentpayment often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause around it.Glossaryagreementagreement often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause around...Glossaryattorneyattorney often shapes similar contract language wording, negotiation leverage, and the plain-English meaning of the clause around i...
BGRisk context hubGlossary meaning, document paths, and adjacent risk pages connected around this clause.
Use caseSOW (Statement of Work)Project Management: Vague scope = cost overruns. BrieflyGo finds the gaps before they find you.Use caseChange RequestProject Management: Every undocumented change is a future dispute waiting to happen.Use casePurchase Order (PO)Finance & Sales: A purchase order is a contract. Its terms govern your delivery, payment, and liability.RiskAttorney fees clause riskPlain-English risk guide for attorney fees clause risk.RiskUnlimited damages clausePlain-English risk guide for unlimited damages clause.RiskPenalty for breach clausePlain-English risk guide for penalty for breach clause.
Source & disclosure
This page is an AI-assisted plain-English explanation based on LexPredict Legal Dictionary context and contract-review patterns. It is not legal advice. Meaning may vary by jurisdiction, industry, and exact clause wording.
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