Sum Certain


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Sum Certain

In law, a specific amount of money stated in a contract. For example, a company may agree to buy another for $10 million. The $10 million price is sum certain, as opposed to an agreement to buy the other company for whatever its market value happens to be when the deal is finalized.
References in periodicals archive ?
The court explained that the forgery and alteration endorsement covered (1) losses resulting directly from (2) the forgery or alteration of (3) "checks, drafts, promissory notes, or similar written promises, orders or directions" (4) to pay a sum certain (5) that were "made or drawn by one acting as an agent or purported to have been so made or drawn.
232) Indeed, "[a]nything that prevents mere arithmetic from reducing a claim to a sum certain requires that the application be made to the court" rather than to the clerk.
If the plaintiffs claim is for a sum certain or for a sum which can by computation be made certain, application may be made to the clerk within one year after the default.
Settle today for a sum certain with the guarantee that if other Plaintiffs do better than you do, you will later be paid an equal amount of money.
An important feature of such an arrangement is that it represents an unconditional financial commitment by the assuming enterprise to pay a sum certain in amount: the face value of the insurance policy.
201: A claim is defined as a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money at a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to a contract.
Therefore, in addition to requiring a sum certain, a claimant must provide a sufficient factual predicate so that a claim can be investigated.
To satisfy the first requirement, the instrument should be in writing, be designated as a debt instrument, have fixed payment dates, contain a promise to pay a sum certain at a fixed date in the future, provide for adequate, noncontingent interest, and be enforceable by the creditor.
Second, some judges have refused to award legal fees for a sum certain unless personal jurisdiction has been obtained.
However, debt will be considered straight debt if it involves an unconditional written promise to pay on demand or on a specified date a sum certain in money; the interest rate and payment dates are not contingent on profits or the borrower's discretion; there is no convertibility (direct or indirect) into stock; and the creditor otherwise would be a qualified S shareholder.
The product addresses investor requirements to lock in a sum certain at a future maturity date.
As there is no requirement to deliver a sum certain at maturity, it may be difficult to conclude with sufficient comfort that the instruments are debt.