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Simple English definitions for legal terms
lex commissoria
Read a random definition: approved indorsed note
A quick definition of lex commissoria:
Lex commissoria is a Latin term that means "forfeiture clause" or "cancellation clause." It was used in Roman law in two ways: first, in a contract of sale, it allowed the seller to cancel the sale if the buyer did not pay the agreed price on time. Second, in a pledge agreement, it allowed the creditor to become the absolute owner of the pledged property if the debtor failed to pay the debt on time. This clause had to be expressly inserted in the contract and was abolished by a law of Constantine as unjust and oppressive.
A more thorough explanation:
Definition: Lex commissoria is a Latin term that means "forfeiture clause" or "cancellation clause." It was used in Roman law to refer to a clause in a contract of sale or pledge agreement that allowed the seller or creditor to cancel the contract if the buyer or debtor failed to pay the agreed price or debt on time.
Examples:
- A seller of a piece of land could include a lex commissoria clause in the contract of sale, which would give them the right to cancel the contract if the buyer did not pay the agreed price within the specified time.
- A creditor could include a lex commissoria clause in a pledge agreement, which would give them the right to take possession of the pledged property if the debtor failed to pay the debt on time.
These examples illustrate how lex commissoria was used in Roman law to protect the interests of sellers and creditors by giving them the right to cancel a contract or take possession of property if the buyer or debtor failed to fulfill their obligations.