Legal Definitions - ex causa lucrativa

Ex Causa Lucrativa

The Latin term ex causa lucrativa describes a situation where a person or entity acquires something of value, such as property or a right, without providing an equivalent payment or consideration in return. Essentially, it refers to a gain obtained gratuitously, often through a gift, inheritance, or donation, where the recipient benefits without having to pay for the acquired item or right.

Here are some examples to illustrate this concept:

• Inheritance of Property: Imagine a niece who inherits a valuable antique car collection from her deceased uncle. She receives these assets without having to purchase them or provide any form of payment. This acquisition is considered ex causa lucrativa because she gains significant wealth through a gratuitous transfer (the inheritance) rather than through a commercial transaction.

• Charitable Donation to a Museum: Consider a wealthy art collector who donates a priceless sculpture to a public art museum. The museum acquires a highly valuable piece for its collection without expending any funds to purchase it. The museum's acquisition of the sculpture is ex causa lucrativa, as it receives a substantial benefit gratuitously.

• Gift of Shares: Suppose a parent gifts a large block of company shares to their adult child. The child now owns a valuable stake in the company, which could generate future income or appreciate in value, without having paid anything for these shares. This transfer of ownership is ex causa lucrativa from the child's perspective, as they have gained a valuable asset without providing consideration.