Legal Definitions - mutuatus

Mutuatus refers to a transaction involving the borrowing or lending of money. It describes the act of one party providing funds to another with the understanding that the money will be repaid, often with interest.

Here are some examples to illustrate this concept:

• Imagine a college student who needs to pay for textbooks and tuition. They approach a financial institution and secure a student loan. This student loan is a form of mutuatus, as the student is borrowing money from the institution with a clear obligation to repay it after graduation.

• Consider a small business owner who needs to purchase new equipment to expand operations. They apply for and receive a business loan from a bank. This loan represents a mutuatus, where the bank provides the necessary funds, and the business owner is legally bound to repay the borrowed amount according to the agreed terms.

• Think about a family buying their first home. They obtain a mortgage from a lender to cover the significant cost of the property. The mortgage is a prime example of a mutuatus, as it is a substantial loan of money from the lender to the family, which they will repay over many years, typically secured by the house itself.