term:

Compensation

compensation n

1 : the act of compensating
2 in the civil law of Louisiana
: the ending of mutual obligations between two people for money or quantities of fungible things usually by operation of law but sometimes by an agreement
3 : something that makes up for a loss [received for the breach of contract]
;specif
: payment to unemployed or injured workers or their dependents see also unemployment compensation, workers' compensation
4 : payment for a thing of value tendered or a service rendered [the Senators and Representatives shall receive for their services "U.S. Constitution art. I"]

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.