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Simple English definitions for legal terms
kickback
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A quick definition of kickback:
A kickback is when someone receives a part of the money they were paid, usually because they were forced to or made a secret agreement. For example, if a contractor pays a city official 5% of the money they received for a government contract, that's a kickback. It's like a secret payment. This is not a good thing to do and is also called a payoff. A kicker is an extra charge or penalty added to a loan, and a kickout clause is a rule in a contract that lets someone end or change the contract if something specific happens.
A more thorough explanation:
A kickback is when someone receives a portion of money that they shouldn't have received. This usually happens because of secret agreements or when someone is forced to give money. It's like a bribe.
A contractor paid a city official 5% of the money they received from a government contract. This is an example of a kickback.
A kicker is an extra charge or penalty that is added to a loan in addition to interest. It can also be an equity participation that a lender seeks as a condition for lending money.
A lender may ask for a percentage of the profits or extra interest in addition to the loan amount. This is an example of a kicker.
A kickout clause is a part of a contract that allows a party to end or change the contract if a specific event happens.
A company may refuse to sell land if they are unable to complete their acquisition of a new headquarters. This is an example of a kickout clause.