Warning
Info
Warning
Info
Simple English definitions for legal terms
lump-sum agreement
Read a random definition: Baby Moses law
A quick definition of lump-sum agreement:
A lump-sum agreement is a deal between two countries. If one country hurts people from the other country, they can make a single payment to settle the claims for those injuries. The country that got hurt gets to decide how to use the money. This way of settling claims has become more popular in the last 40 years instead of going to court.
A more thorough explanation:
A lump-sum agreement is a type of agreement in international law where one nation that has caused injuries to citizens of another nation agrees to make a single payment to settle outstanding claims for those injuries. The recipient nation has the power to decide how the settlement funds should be distributed.
For example, if Nation A accidentally bombs a hospital in Nation B, causing injuries to several citizens, Nation A may agree to pay a lump sum to Nation B to settle the claims for those injuries. Nation B can then decide how to distribute the funds to the affected citizens.
This method of settling claims has become increasingly common in the last 40 years as an alternative to submitting the claims to an international tribunal. It allows for a quicker resolution and avoids the costs and time associated with a lengthy legal process.