Legal Definitions - sole discretion

Sole discretion refers to the exclusive right or power of a specific individual or entity to make a decision or take an action without needing approval from any other party. When someone has "sole discretion," their judgment alone determines the outcome, and their decision cannot be overridden or challenged by others, as long as it falls within the bounds of their authority and any applicable laws.

• Example 1: Commercial Lease Agreement

  Imagine a commercial lease agreement that states, "The landlord reserves the sole discretion to approve any structural modifications to the leased premises."

  Explanation: This means that the tenant cannot make any changes to the building's structure without the landlord's explicit permission. Furthermore, the landlord's decision on whether to allow or deny such modifications is final and cannot be challenged by the tenant, even if the tenant believes the proposed changes are reasonable or necessary. The landlord's judgment is the only one that matters in this specific context.

• Example 2: Employee Bonus Program

  An employee handbook might state, "Annual performance bonuses are awarded at the company's sole discretion."

  Explanation: In this scenario, the company alone decides if and how much of a bonus an employee receives. Employees cannot demand a bonus, nor can they challenge the company's decision not to award one, even if they feel they performed exceptionally well. The company's judgment is the exclusive factor in determining bonus payouts.

• Example 3: Charitable Foundation Grant

  A charitable foundation's grant application guidelines might state, "The Foundation's Board of Directors retains sole discretion in selecting grant recipients and determining award amounts."

  Explanation: This means that only the Foundation's Board has the authority to choose which organizations receive funding and how much money they will be awarded. Applicants cannot appeal the Board's decisions or argue that their project is more deserving than another. The Board's judgment is the ultimate and unchallenged authority in the grant-making process.