Legal Definitions - propter rem ipsam non habitam

Propter rem ipsam non habitam

This historical Latin legal phrase translates to "on account of not having had possession of the thing itself." It describes a situation where a party suffers damages because they did not receive a specific item or property they were contractually entitled to possess. Essentially, it refers to the harm or loss incurred due to the non-delivery or non-receipt of a particular thing that was promised.

Here are some examples illustrating this concept:

• Imagine a small bakery that contracts with a specialized equipment supplier for a custom-built, high-capacity oven. The bakery pays a deposit and plans its production schedule around the oven's expected delivery. However, the supplier repeatedly fails to deliver the oven, causing the bakery to lose out on large catering orders and incur additional costs by using less efficient methods. The damages suffered by the bakery, such as lost profits and increased operational expenses, are propter rem ipsam non habitam – they arise directly from the bakery not having received possession of the specific oven it contracted for.

• Consider an art collector who successfully bids on a rare, authenticated painting at an auction. The collector pays the full amount, but the auction house, due to an administrative error, mistakenly sells and delivers the painting to another buyer. The original collector suffers damages, which could include the cost of finding a comparable replacement, the loss of the unique piece for their collection, or the difference in market value if the painting's value increased. These damages are incurred propter rem ipsam non habitam because the collector did not gain possession of the specific painting they legally purchased.

• A construction company enters into a contract to purchase a specific batch of custom-fabricated steel beams for a critical bridge project. The beams are unique to the project's design and cannot be easily sourced elsewhere. The supplier, however, fails to deliver the beams on time, causing significant delays to the bridge construction, leading to penalties for missed deadlines and increased labor costs. The financial losses and penalties faced by the construction company are a direct result of propter rem ipsam non habitam, as they stem from not having received the specific, essential steel beams required for the project.