Legal Dictionary

ex gratia

Commercial & Business Law / Defined Legal Terms & Phrases
; Updated: 7 September 2013

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.

Ex gratia payment may also be offered as part of an agreement so as to not give rise to an indication of legal liability on the part of the payer.

[Latin: as a favour]


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


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