Legal Dictionary
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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