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Ex gratia
Contract Law

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Term: ex gratia

1.

Ex gratia is most frequently used in the context of 'ex gratia payments', which is an acknowledgement that when a payment is going to be made, there is no legal obligation to make the payment. The payment is made as gratuitously for some reason, such as a token of appreciation for long service. [Latin: As a favour]

Usage: The ex gratia payment was made to settle the dispute without admission if liability.

Related Words: contract; consideration.


 

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