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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
in money of a sum certain" the compensation history and, if applicable, pattern is examined.
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." It then held that the law firm's loss "was the result of a forged instrument within the clear and unambiguous meaning" of the forgery and alteration endorsement.
When the claim is for a sum certain, the clerk may only enter the default judgment if there is "no reasonable question about the amount of the judgment." (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.
The plaintiffs application for the default judgment, which was presented to the clerk because the claim was for a "sum certain," did not contain an affidavit of the facts underlying the plaintiff's claim prepared by a person with firsthand knowledge.
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.
That conclusion followed from this regulatory definition of a claim found in FAR 33.201: 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...., however, a written demand or written assertion by the contractor seeking the payment of money exceeding $100,000 is not a claim under the Contract Disputes Act in 1978 until certified as required by the act and [FAR 33.207].
The court held, inter alia, "notice must do more than cause the government to sift though the record." Rather, notice must be sufficiently detailed so that the United States can "evaluate its exposure as far as liability is concerned." 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.
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.