Legal Definitions - locatio

Locatio is a term originating from Roman and civil law that describes a type of contract where one party agrees to provide the use of a physical item, their labor, or a specific service to another party, in exchange for payment or other compensation. Essentially, it encompasses various agreements that we might recognize today as leases, hiring agreements, or contracts for services. Both parties typically benefit from such an arrangement.

• Example 1: Hiring Equipment

  Imagine a small construction company that needs a specialized crane for a single, large building project but does not want to purchase such an expensive piece of equipment outright. They enter into an agreement with an equipment rental company to use the crane for six months, paying a fixed monthly rental fee.

  How it illustrates locatio: This scenario is a form of locatio because the equipment rental company (one party) provides the temporary use of a physical item (the crane) to the construction company (the other party) for a specific period, in exchange for compensation (the monthly rental fee).

• Example 2: Contracting for Professional Services

  A homeowner decides to have a custom garden designed and installed. They hire a landscape architect who agrees to create the design, select the plants, and oversee the entire installation process, including coordinating with a landscaping crew. The homeowner pays the landscape architect a lump sum upon the project's completion.

  How it illustrates locatio: This is an example of locatio because the homeowner (one party) is hiring the landscape architect (the other party) to provide a specific service – the design and supervision of a garden installation – in return for a specified payment. The architect's expertise and project management constitute the "services" being provided.

• Example 3: Engaging for Transportation of Goods

  A vineyard needs to transport a large shipment of bottled wine from its production facility to a distributor located in another state. They contract with a freight shipping company to pick up, safely transport, and deliver the wine. The vineyard pays the shipping company a fee based on the volume and distance of the shipment.

  How it illustrates locatio: This situation demonstrates locatio because the vineyard (one party) is engaging the freight shipping company (the other party) to perform a specific task – the transportation of goods – for an agreed-upon compensation. The "service" here is the logistical effort and physical movement of the wine.