Legal Definitions - lucrum

Lucrum refers to the financial gain or profit obtained from a transaction, activity, or situation. In a legal context, it often denotes the benefit or advantage, typically monetary, that one party receives.

• Example 1: Business Contract Profit

  A graphic design studio enters into a contract to create a new brand identity for a client for a fee of $15,000. After paying its designers, software licenses, and other operational costs associated with the project, the studio calculates a net financial benefit of $7,000.

  This $7,000 represents the lucrum for the graphic design studio, as it is the direct financial gain or profit realized from successfully completing the contractual work.

• Example 2: Investment Returns

  An individual purchases a bond for $10,000. Over the course of its term, the bond pays out $1,500 in interest and returns the original principal upon maturity.

  The $1,500 in interest payments constitutes the lucrum, illustrating the financial gain achieved through the investment beyond the initial capital.

• Example 3: Unjust Enrichment Scenario

  A property owner mistakenly has a new fence built entirely on their neighbor's land, significantly increasing the neighbor's property value. The neighbor was aware of the mistake but did not intervene, allowing the construction to complete and subsequently benefiting from the improvement without cost.

  The increase in the neighbor's property value due to the uncompensated fence could be considered lucrum. This situation might lead to a legal claim of unjust enrichment, where the law aims to prevent one party from unfairly receiving a benefit at another's expense.