Legal Definitions - concession

Definition: A concession is a government grant that allows specific privileges. It can also refer to voluntarily yielding to a demand for the sake of a settlement, a rebate or abatement, or an international law contract in which a country transfers some rights to a foreign enterprise.

• A government grants a concession to a company to operate a toll road.
• In a negotiation, one party may make a concession to reach a compromise.
• A store may offer a concession, such as a discount or rebate, to customers who purchase a certain amount of merchandise.
• A country may enter into a concession agreement with a foreign company to allow them to mine natural resources within their borders.

These examples illustrate the different ways in which the term "concession" can be used. In the first example, a government is granting a concession to a company to operate a toll road, giving them specific privileges. In the second example, a concession is made in order to reach a settlement or compromise. The third example shows how a concession can be a rebate or discount offered to customers. Finally, the fourth example demonstrates how a concession can be an international law contract that allows a foreign company to engage in an activity within a country's borders.