Legal Definitions - gratia mandatarii

gratia mandatarii

This Latin phrase translates to "for the sake of the mandatory." In legal terms, it refers to a specific type of authorization or instruction (known as a "mandate") that is given by one party (the "mandant") to another (the "mandatory"). The crucial characteristic of a gratia mandatarii mandate is that it is granted solely for the benefit or advantage of the mandatory, not primarily for the benefit of the mandant.

Because the authorization is exclusively for the mandatory's benefit, it is considered irrevocable. This means the mandant cannot later withdraw or cancel the authorization, even if they change their mind. This stands in contrast to most mandates, which are typically given for the benefit of the mandant and can therefore be revoked at any time.

• Example 1: Securing a Debt Payment

  Imagine a small business owner (the mandant) who owes a significant amount of money to a supplier (the mandatory). To provide the supplier with assurance of repayment, the business owner grants the supplier an irrevocable authorization to directly collect payments from specific, identified future invoices owed to the business owner by certain clients. This authorization is given gratia mandatarii because its primary purpose is to benefit the supplier by securing the debt. Consequently, the business owner cannot later revoke this authorization, even if they find another way to pay the supplier or decide they want to manage their receivables differently.

• Example 2: Right of Access for Development

  Consider a landowner (the mandant) who sells a portion of their property to a developer (the mandatory) for a new housing project. As part of the sale agreement, the landowner grants the developer an irrevocable right to access a specific part of the remaining land to install essential utility lines (water, sewer, electricity) for the new development. This right of access is granted gratia mandatarii because it is solely for the benefit of the developer, enabling them to complete their project. The landowner cannot later revoke this access, as doing so would severely hinder or prevent the developer's ability to build the homes.

• Example 3: Irrevocable Debit Authorization for a Loan

  A company (the mandant) takes out a business loan from a bank (the mandatory). As a condition of the loan, the company provides the bank with an irrevocable authorization to automatically debit a specific corporate investment account if the company misses a loan payment or defaults. This authorization is gratia mandatarii because it is exclusively for the bank's benefit, providing a direct mechanism to recover funds and reduce its risk. The company cannot later revoke this authorization, as it is a fundamental part of the security the bank relied upon when issuing the loan.