What can the City legally offset from amounts due to the Contractor?

The correct response focuses on the legal ability of the City to offset amounts due to the Contractor based on specific circumstances defined in the agreement. In the context of contracts, an "Event of Default" typically refers to situations where one party fails to meet their contractual obligations, which could result in damages or losses for the non-defaulting party.

In this scenario, if the Contractor fails to meet their obligations, the City is entitled to recover any resulting damages, losses, costs, or expenses caused by the Contractor's default. This legal mechanism protects the interests of the City by allowing it to recoup costs incurred due to the Contractor's failure to perform as agreed. This is a standard clause in many contracts to ensure that parties are held accountable and that any financial repercussions from a breach can be addressed through offsets against payment due.

The other options do not pertain to conditions that legally warrant an offset from amounts due. Future compensation, personal expenses, and additional payments related to new projects do not align with contractual provisions concerning offsets for defaults or losses, making them inapplicable in this context.