Side payments are best described as:

• A. Negotiations between parties
• B. Bribes or kickbacks
• C. Compromises made
• D. Legal settlements

Answer: (C)

Side payments are extra concessions provided to seal an agreement, representing a compromise reached beyond the formal terms. This makes sense because such payments are used to bridge gaps between parties by giving up or granting something beyond the written deal to reach a consensus. They’re not merely the process of negotiating, nor are they a formal legal settlement in themselves. While sometimes associated with illicit payments, the intended description in this context is that they are compromises made to finalize the arrangement.