Definite sum is a legal term that refers to a specific amount (usually a sum of money) indicated directly in a contract or transferable instrument (such as a mortgage or promissory note) at the time of writing the document and that cannot be interpreted or misinterpreted. The certain sum is therefore used for all types of contracts, including financial instruments, but also employment contracts, purchase contracts and leasing contracts. « Safe sum. » Merriam-Webster.com Legal Dictionary, Merriam-Webster, www.merriam-webster.com/legal/sum%20certain. Retrieved 8 October 2022. A certain sum describes the settlement price specified for a contract or negotiable instrument. It is a fixed or specific amount, unambiguously. A contract between two parties that sets a certain amount eliminates any possibility of misunderstanding or misinterpretation of the amount owed or owed. A certain amount does not require future calculation or expectation of future events. Because a certain amount is known in advance, players are in a better position to hedge or insure against the declared value than if the amount were flexible or varies depending on the contingency (for example, the different price of a call option moving with the underlying security).
The sum of some is also called « amount to be paid ». Subscribe to America`s largest dictionary and get thousands of other definitions and an advanced search – ad-free! A contract that provides a certain amount of $10,000 for the work performed is clearer than a permanent contract that provides for payment of $50 per hour, subject to a maximum of 200 hours. An employee`s salary, if stipulated in a contract, would be a certain amount, while his performance-based bonus would not. n. a specific amount specified in a contract or transferable deed (such as a promissory note) at the time the document is issued. A certain amount does not require future calculation or expectation of future events. Example: « Wanda Williams pays Wilma Jackson $10,000 for the renovation of her home, all costs included, » is a sum that is certain compared to « Williams will pay Jackson for the time (at the rate of $50 per hour) and material costs for the renovation of Williams` house. » Take, for example, a contract that says, « Alice pays Bob $8,000 to paint her house, all costs included. » The amount owed to Bob is a certain amount. Compare it to: « Alice will pay Bob for his time (at a cost of $60 per hour) and the material costs to paint Alice`s house. » The amount owed to Bob is not expressly stated. A negotiable instrument can only be traded if it provides for a certain amount. For example, if a borrower enters into a $400,000 mortgage agreement with a lender and this amount is clearly indicated in the mortgage letter, this figure is the amount that is safe.