Sum Certain (Contracts) - Explained
What is a Sum Certain in a Contract?
Written by Jason Gordon
Updated at September 26th, 2021
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What is a Sum Certain?
A sum certain (or sum payable) describes the specific amount clearly stated in a financial contract or negotiable instrument such as a mortgage note or promissory note. A sum certain is void of ambiguity, hence, there can be no misconstruction or misinterpretation. A sum certain can also be used in purchase contracts, employment contracts, and lease contracts.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
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