This is the amount paid to redeem an obligation, or to get rid of a financial obligation at once. This can happen, for example, in the early termination of a contract, severance pay, or the surrender of a life insurance policy or pension. The surrender price is often the result of negotiations or legal proceedings and can be substantial, depending on the nature of the obligation and the circumstances.

Example: In the case of a layoff, a severance pay may be paid to compensate the employer for the loss of employment, as in the example of CBRE Netherlands where a laid-off executive received a severance pay of 865,000 euros.

Compare: Ransom