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. It is a voluntary payment made by one party to another out of goodwill rather than legal obligation. In the context of a project being closed down, it may be made to compensate for any losses or expenses incurred that are not covered by the contract.

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