Ex gratia

“Ex gratia” is a Latin phrase that means “out of kindness” or “as a favor.” In legal and financial contexts, it is often used to describe a payment that is made without any legal obligation. An ex gratia payment is usually made voluntarily, as a gesture of goodwill or to settle a claim or dispute, even though there may not be a legal requirement to compensate the recipient. This type of payment is not an admission of guilt or liability but is made to resolve a matter amicably or to provide assistance in situations where strict legal obligations may not apply.