Legal Definitions - concession

In legal contexts, the term concession can refer to several distinct concepts:

• A grant of specific privileges by a government or authority. This involves an official permission or right given to an individual or entity to perform a particular activity or operate in a certain way.

  • Example 1: A city council might grant a private company a concession to build and operate a new public transportation system, such as a light rail, for a set number of years. This means the company receives the exclusive right and necessary permissions from the city to undertake this large-scale project.

    Explanation: Here, the city is granting a specific privilege (the right to operate public transit) to a private entity, which is a form of government concession.

  • Example 2: A national park service may offer a concession to a vendor to run a small cafe and gift shop within the park boundaries. This allows the vendor to conduct commercial activities in a protected area where such operations are typically restricted.

    Explanation: The park service is granting a privilege (the right to operate a business) within its jurisdiction, which is a concession.

• A voluntary yielding to a demand or point during negotiations, often to reach a settlement or agreement. This involves one party giving up something they initially sought or agreeing to something requested by the other party.

  • Example 1: During a contentious contract negotiation between a software developer and a client, the developer makes a concession by agreeing to a lower upfront payment in exchange for a higher percentage of future revenue. This helps bridge the gap and move towards a final agreement.

    Explanation: The developer voluntarily gave up an initial demand (higher upfront payment) to facilitate a settlement.

  • Example 2: In a mediation session for a boundary dispute between neighbors, one neighbor makes a concession by agreeing to move their fence back by a foot, even though they believed their original placement was correct, to avoid a lengthy and costly lawsuit.

    Explanation: The neighbor voluntarily yielded on their position regarding the fence line to achieve a resolution.

• A rebate or abatement, often a reduction in a payment or obligation. This refers to a decrease or discount on an amount owed or expected.

  • Example 1: A local government might offer a property tax concession to homeowners who install energy-efficient windows, resulting in a lower annual tax bill for those who qualify.

    Explanation: The reduction in property tax is a concession, acting as a rebate for specific actions.

  • Example 2: A landlord might offer a rent concession of one month free to new tenants who sign a two-year lease, effectively reducing the overall cost of their first year's rent.

    Explanation: The free month of rent is a concession, a form of abatement on the total rent due.

• In international law, a contract where a country transfers certain rights to a foreign enterprise. This typically involves a foreign company gaining the right to engage in an activity, such as resource extraction or infrastructure development, within the host country, subject to specific terms and state approval.

  • Example 1: A developing nation signs a concession agreement with a multinational mining corporation, granting the corporation the exclusive right to explore for and extract specific minerals from a designated region for 25 years. In return, the nation receives royalties and a share of the profits.

    Explanation: The nation is transferring rights (to mine minerals) to a foreign company under a specific contract, which is an international concession.

  • Example 2: A government enters into a concession with an international consortium to finance, build, and operate a major new seaport for a period of 40 years. After this period, the ownership and operation of the port will revert to the state.

    Explanation: The government is granting a foreign enterprise the rights to develop and operate infrastructure within its territory, which is a common form of international concession.