Pro Rata Law and Legal Definition
Pro rata is a Latin term meaning "in proportion," referring to a share to be received or an amount to be paid based on the fractional portion of value, such as ownership, responsibility or time used. A renter of a rental property may pay his/her pro rata share of a monthly rate if the rental ends before the month expires.
For example:
- Where several debtors are each liable for the whole debt and each is liable for his own share or proportion only, they are said to be bound pro rata.
- A pro-rata dividend means that every shareholder gets an equal proportion for each share they own.
- Pro rata may refer to the recovery from special funds of costs incurred by central service agencies for the overall administration of state government.
