Literally, ex gratia is a Latin term that translates to “by favor.” In modern vernacular, the term is most commonly used in legal language to mean payments or other compensation paid to an injured or aggrieved party or to persons who otherwise have little legal claim to compensation. Such payments are made without an admission of guilt or assumption of liability on the part of the payer, no matter if the payer is a private corporation or a public government entity. Rather, such payments are made out of a sense of moral obligation, in the absence of legal obligation, liability, or fault. In some cases, such payments are made to prevent a liability suit or other legal action, but primarily the reason for such monetary awards is a sense that timely compensation is the morally correct thing to do.