Ex Gratia
Literal meaning: “From grace or favor”
What does the Latin term "Ex Gratia" mean in law?
Ex gratia describes a payment or act performed voluntarily, out of kindness or moral obligation, without any legal duty or admission of liability. An ex gratia payment is made as a gesture of goodwill rather than because the payer is legally required to do so. The distinction is legally significant because accepting an ex gratia payment generally does not establish a precedent, create an enforceable right to future payments, or constitute an admission that the payer was at fault. Insurance companies, employers, and governments frequently make ex gratia payments to resolve disputes without formal proceedings or to provide relief in situations where legal liability is uncertain.
Source: General · Legal Latin
Legal Definition
Ex gratia describes a payment or act performed voluntarily, out of kindness or moral obligation, without any legal duty or admission of liability. An ex gratia payment is made as a gesture of goodwill rather than because the payer is legally required to do so. The distinction is legally significant because accepting an ex gratia payment generally does not establish a precedent, create an enforceable right to future payments, or constitute an admission that the payer was at fault. Insurance companies, employers, and governments frequently make ex gratia payments to resolve disputes without formal proceedings or to provide relief in situations where legal liability is uncertain.
How It's Used
Ex gratia payments are common in insurance disputes where the insurer denies coverage but offers a partial payment as a goodwill gesture, and in employment contexts where an employer provides a severance package beyond what is legally required. Governments make ex gratia payments to citizens harmed by government actions when no legal claim exists.
Example Sentences
The airline offered an ex gratia payment of five hundred dollars to each stranded passenger, explicitly noting that the payment did not constitute an admission of fault.
Although the insurer determined the claim fell outside policy coverage, it authorized an ex gratia payment to maintain the longstanding client relationship.
The government established an ex gratia compensation fund for residents affected by the contamination, without admitting liability for the environmental damage.