Legal Definitions - ob majorem cautelam

ob majorem cautelam

This Latin phrase translates to "for greater security" or "out of an abundance of caution." It describes an action taken or a precaution implemented that goes beyond what is strictly necessary or legally required, simply to ensure an even higher level of safety, certainty, or protection against potential risks or future disputes.

Here are some examples to illustrate this concept:

• Example 1: Real Estate Transaction

  A buyer of a commercial property insists on obtaining an additional environmental assessment, even though the seller has already provided a standard report indicating no issues, and local regulations do not mandate a second assessment. The buyer does this ob majorem cautelam to ensure there are absolutely no hidden environmental liabilities that could surface later.

  Explanation: The buyer is taking an extra step (the second assessment) beyond what is required or initially provided, purely for the sake of greater assurance and to mitigate any unforeseen risks related to the property's environmental status.

• Example 2: Corporate Governance

  A company's board of directors decides to implement a new, more stringent internal audit process that exceeds the minimum requirements set by financial regulations. They do this ob majorem cautelam to bolster investor confidence and prevent any potential financial irregularities, even if their current processes are compliant.

  Explanation: The company is voluntarily adopting a higher standard of oversight than legally mandated. This additional measure serves to provide enhanced security and transparency for the company's financial operations, protecting stakeholders and the company's reputation.

• Example 3: Contractual Agreement

  When drafting a loan agreement between two private parties, the lender's attorney includes several specific clauses detailing the consequences of default, even though general contract law would cover such scenarios. The attorney adds these clauses ob majorem cautelam to make the terms unequivocally clear and leave no room for ambiguity or future disagreement.

  Explanation: While the law would provide default remedies, the attorney is adding explicit, detailed language to the contract. This extra specificity acts as an additional layer of security, ensuring both parties fully understand their obligations and the repercussions, thereby preventing potential disputes.