Legal Definitions - mutui datio

Mutui datio refers to a specific type of loan, originating from Roman law, where items that are interchangeable and can be easily weighed, measured, or counted are lent. The fundamental understanding is that the borrower will repay the loan by returning an equal quantity of the same type of item, rather than the exact original items borrowed. This concept applies to goods that are typically consumed, used up, or blended, making the specific individual items less important than their quantity or type.

• Scenario: Construction Materials

  A small construction firm, unexpectedly short on a particular grade of sand needed for a concrete mix, borrows ten cubic yards of that sand from a larger, nearby construction company to avoid project delays.

  Explanation: This is an example of mutui datio because sand is a material that can be measured by volume (cubic yards) and is fungible, meaning one cubic yard of this specific grade of sand is essentially identical to another. The borrowing firm is expected to return ten cubic yards of the same type of sand, not the exact grains originally borrowed, as the original sand will be consumed in their concrete production.

• Scenario: Agricultural Produce

  During an unexpected cold snap, a dairy farmer runs low on hay for their cattle and borrows 50 bales of alfalfa hay from a neighboring farm to ensure their livestock are fed.

  Explanation: Here, alfalfa hay is an item that can be counted (bales) and is consumed by the animals. The lending farmer understands that the borrowing farmer will not return the *exact* same bales of hay, but rather an equivalent quantity (50 bales) of the same type of alfalfa hay once their own supply is replenished or new stock is acquired.

• Scenario: Industrial Chemicals

  A textile factory experiences a temporary disruption in its supply chain for a common dyeing agent and borrows 200 liters of the chemical from another factory to maintain production schedules.

  Explanation: This situation illustrates mutui datio because the dyeing agent is a measurable liquid (liters) that will be used up in the textile manufacturing process. The borrowing factory is obligated to return 200 liters of the same chemical, not the specific batch or molecules originally received, as the chemical is interchangeable and consumed in production.