Legal Definitions - laesio enormis vel ultra dimidium

Laesio enormis vel ultra dimidium is a Latin legal principle, primarily found in civil law systems, which translates to "enormous harm or beyond half." It refers to a situation in a contract, typically for the sale of land or goods, where one party suffers a significant financial loss because the agreed-upon price is grossly disproportionate to the true market value of the item. Specifically, this principle applies when the selling price is less than half of the item's actual value, or, in some interpretations, when the purchase price is more than double its actual value. It allows the injured party to seek rescission (cancellation) of the contract or to have the price adjusted to a fair amount, aiming to prevent exploitation and ensure fairness in transactions.

Here are some examples illustrating this principle:

• Example 1: Undervalued Property Sale

  An elderly individual, unfamiliar with current real estate trends, sells a plot of land in a rapidly developing suburban area for $75,000. Shortly after the sale, an independent appraisal reveals that the true market value of the land, considering its development potential and location, was approximately $200,000 at the time of the transaction.

  Explanation: In this scenario, the selling price of $75,000 is significantly less than half of the land's actual market value of $200,000. This situation could be considered "laesio enormis vel ultra dimidium" because the seller suffered enormous harm by receiving a price far below the property's true worth, potentially allowing them to challenge the sale in jurisdictions where this principle is recognized.

• Example 2: Overpriced Collectible Purchase

  A novice art collector, eager to acquire a specific painting, purchases it from a dealer for $30,000. Later, the collector has the painting authenticated and appraised by an expert, who determines its true market value to be $12,000, noting that while genuine, it was significantly overpriced by the dealer.

  Explanation: Here, the buyer paid $30,000 for an item with a true market value of $12,000, meaning they paid more than double its actual worth. This demonstrates "laesio enormis vel ultra dimidium" from the buyer's perspective, as they suffered enormous harm by paying an excessively high price, which might allow them to seek a price adjustment or contract rescission.

• Example 3: Agricultural Land Transaction

  A farmer, facing urgent financial difficulties, sells a large tract of fertile agricultural land to a corporate buyer for $100,000. An independent valuation conducted a few months later confirms that the land's market value at the time of sale, based on its productivity and location, was closer to $250,000.

  Explanation: The farmer sold the land for $100,000, which is less than half of its true market value of $250,000. This situation illustrates "laesio enormis vel ultra dimidium" because the farmer suffered a substantial loss by selling the property for a price far below its actual worth, potentially indicating an exploitative transaction.