Legal Definitions - juxta ratam

Juxta ratam is a Latin legal term meaning at or after the rate, or in proportion to the rate. It refers to a calculation, payment, or adjustment that is made according to a specific, predetermined rate, proportion, or scale.

Here are some examples to illustrate this concept:

• Example 1: Shareholder Dividends

  Imagine a company decides to distribute its annual profits to shareholders. If the distribution is made juxta ratam, each shareholder receives a portion of the profits directly proportional to the number of shares they own. For instance, a shareholder owning 5% of the company's total shares would receive 5% of the distributed profit.

  This illustrates juxta ratam because the amount received by each shareholder is determined "at the rate" of their ownership stake in the company.

• Example 2: Insurance Premium Adjustments

  Consider a business that pays an annual insurance premium. If the business sells off a significant portion of its assets midway through the policy year, reducing its overall risk, the insurer might agree to adjust the premium for the remaining months juxta ratam. This means the business would receive a refund or credit for the unused portion of the premium, calculated proportionally for the period after the risk reduction.

  This illustrates juxta ratam because the adjustment to the premium is made "after the rate" of the original annual premium, specifically for the remaining duration of the policy.

• Example 3: Contractual Payments for Partial Performance

  Suppose a client hires a consultant for a year-long project with an agreed total fee. If the project is unexpectedly terminated by the client after six months, but the consultant has completed half of the agreed-upon work, the consultant might be entitled to payment juxta ratam. This would mean they receive 50% of the total agreed fee, corresponding to the 50% of the work completed.

  This illustrates juxta ratam because the payment is calculated "at the rate" of the work performed relative to the total scope of the project.