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Legal Definitions - lump-sum payment

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Definition of lump-sum payment

Definition: A lump-sum payment is a single payment of a large sum of money, rather than smaller payments over time.

Example: When you win the lottery, you may have the option to receive your winnings as a lump-sum payment or as smaller payments over a period of years.

This example illustrates the definition because it shows that a lump-sum payment is a one-time payment of a large amount of money, rather than receiving smaller payments over time.

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Simple Definition

Term: LUMP-SUM PAYMENT

Definition: A lump-sum payment is when someone receives all the money they are owed at once, instead of getting paid in smaller amounts over time. It's like getting a big bag of candy all at once instead of one piece at a time.

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