Question

What are the methods of recoupment of short workings

Answer 1

Answer:

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Answer 2

There are mainly two methods of recoupment: The fixed method and the Floating method.

• Recoupment is a right given to the person who holds the lease of a property by the owner to reduce the short workings.
• In the fixed method, the landlord agrees to compensate for short workings in the beginning. (First three or four years)
• Short workings beyond this period can not be compensated using this method.
• This promise is valid only over a fixed period.
• In the floating method, the landlord agrees to compensate for short workings in the next 2 or 3 years.
• If it is valid for the coming two years, short workings in the 3rd year can not be recouped.
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