An ex-gratia claim made when a project is closed down is made when:
A)there is no contractual basis for a claim.
B)the project company fails to perform to the terms of the contract.
C)the client company fails to perform to the terms of the contract.
D)a third party causes either the client or project company to fail to perform to the terms of the contract.

Question

Quizplus · Accepted Answer

An ex-gratia claim is made when there is no contractual basis for a claim. This means that the claim is being made out of goodwill or as a voluntary gesture, and not because it is required by the terms of the contract. This could occur if a project is closed down prematurely, for example, and the parties involved agree to a settlement without any legal obligation to do so.

An Ex-Gratia Claim Made When a Project Is Closed Down