Legal Definitions - causa lucrativa

Causa Lucrativa

In legal terms, causa lucrativa refers to a transaction or action undertaken with the primary purpose of making a profit or achieving a financial gain. It highlights the motive of financial advantage behind a legal act, distinguishing it from actions driven by generosity, charity, or an exchange of equivalent value.

Here are some examples illustrating causa lucrativa:

• Commercial Real Estate Development: A real estate development firm purchases an old, dilapidated building in a prime urban location. Their plan is to renovate it extensively, add modern amenities, and then lease out the refurbished office spaces to businesses at a significantly higher rental rate than what the previous owner could command.

  This illustrates causa lucrativa because the firm's fundamental reason (causa) for acquiring and renovating the building is the anticipated financial profit (lucrativa) from the increased rental income and the eventual higher resale value of the property.

• Stock Market Investment: An individual invests a substantial sum of money into a portfolio of technology stocks, after researching market trends and company performance. They anticipate that these stocks will appreciate significantly over the next few years, allowing them to sell their shares for a profit that exceeds their initial investment.

  Here, the individual's causa lucrativa is the expectation of financial gain from the appreciation of the stock value. Their primary motive for the investment is to increase their wealth.

• Manufacturing and Sales: A company manufactures custom-designed furniture. They source raw materials like wood, fabric, and metal, employ skilled artisans, and then sell the finished furniture pieces to retailers and directly to consumers at a price that covers their production costs and generates a surplus.

  The company's causa lucrativa is evident in their entire business model: every step, from material acquisition to final sale, is driven by the goal of producing goods that can be sold for a profit, ensuring the financial viability and growth of the enterprise.