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Simple English definitions for legal terms
bonus
Read a random definition: ECOA
A quick definition of bonus:
Bonus: An extra payment given to someone as a reward for doing a good job or as an incentive to do better. It's like getting a surprise gift for working hard or achieving something special. In some jobs, bonuses are given at the end of the year to show appreciation for the work done throughout the year. It's not a gift, but a payment for the extra effort put in. In the oil and gas industry, a bonus is an additional payment made to encourage someone to sign a lease for drilling on their land. A performance bonus is given to someone who has done exceptionally well in their work.
A more thorough explanation:
A bonus is an extra payment given in addition to what is expected or due. In the context of employment, bonuses are not gifts but are paid for services or as an incentive for outstanding productivity.
For example, at the end of the year, some companies give their employees a bonus as a reward for their hard work throughout the year. Another example is in the oil and gas industry, where a bonus may be paid to a lessor as an incentive to sign an oil-and-gas lease.
The amount of bonus paid may vary depending on the nature of the development activity in the area. If the land is located in a semi-proven area or a logical extension of a proven field, the bonus paid may be substantial.
Overall, a bonus is an additional payment given as a reward or incentive for exceptional performance or as a way to attract business in certain industries.