Legal Definitions - pretium

"Pretium" is a Latin term that broadly refers to the price, value, or worth of something. In legal contexts, it often appears in specific phrases to describe different types of value.

• Pretium Affectionis

  This term describes an enhanced value placed on an item by its owner due to personal attachment, sentiment, or unique associations, rather than its objective market price. It is often referred to as "sentimental value." A key legal principle associated with pretium affectionis is that courts generally do not use this subjective, sentimental value as the basis for calculating monetary compensation (damages) if the item is lost, stolen, or damaged. Instead, they typically rely on the item's objective market value.

  • Example 1: A Family Heirloom Watch

    Imagine an antique pocket watch that has been passed down through three generations of a family. While its market value to a collector might be $500, to the current owner, it is priceless due to the memories of their grandfather and the family history it represents.

    How it illustrates the term: The owner's deep emotional connection and the watch's historical significance within the family create a value far exceeding its objective market price. This additional, subjective worth is the pretium affectionis. If the watch were accidentally destroyed, a court would likely only award damages based on its $500 market value, not the owner's much higher sentimental valuation.

  • Example 2: A Child's First Drawing

    A parent carefully preserves a crayon drawing made by their child when they were very young. The drawing itself has no monetary value; no one would buy it. However, to the parent, it holds immense personal significance as a tangible memory of their child's early years.

    How it illustrates the term: The drawing's value is entirely derived from the parent's emotional bond and the memories it evokes, making it a clear example of pretium affectionis. If the drawing were lost, the parent would experience a significant emotional loss, but there would be no market value to compensate for in a legal claim.

• Pretium Periculi

  This phrase translates to "the price of the risk." It refers to the cost paid to protect against a potential future loss, danger, or liability. The most common application of pretium periculi is the premium paid for an insurance policy.

  • Example 1: Homeowner's Insurance Premium

    A homeowner pays an annual premium to an insurance company. This payment ensures that if their house is damaged by fire, flood, or theft, the insurance company will cover the repair or replacement costs, up to the policy limits.

    How it illustrates the term: The annual premium is the pretium periculi. It is the specific amount of money the homeowner pays to transfer the financial risk of potential damage or loss to their property to the insurance provider.

  • Example 2: Travel Insurance Cost

    Before embarking on an international trip, a traveler purchases travel insurance. This additional cost covers potential risks such as medical emergencies abroad, lost luggage, or trip cancellations.

    How it illustrates the term: The fee paid for the travel insurance policy represents the pretium periculi. It is the price the traveler pays to mitigate the financial risks associated with unforeseen events that could disrupt their journey or cause significant expenses.