Lump-Sum Agreement Law and Legal Definition

In the context of International law, a lump-sum agreement is an agreement for one nation that caused injuries to another nation's citizens to make a single payment to the other nation to settle outstanding claims for those injuries. The recipient nation has the right to determine the mode of distribution of the settlement funds. This method of settling claims has become common in the past 40 years as an alternative to submitting the claims to an international tribunal.