Maxim 12.12.14
He at whose risk a thing is done, should receive the profits arising from it.
Source: Black's, 2d. 1182; Weisman, 35q
Difficulty 3/5 — Intermediate
Explanation
(English-origin maxim.) Risk and reward travel together — the party who bears the risk of loss in a venture is entitled to receive the profits arising from it.
Where this applies
- An investor puts up all the capital for a business venture while the other partner contributes only labor — the investor, bearing the financial risk, is entitled to the lion's share of the profits.
- A shipowner who bears the entire risk of loss if cargo is damaged at sea is entitled to the freight charges, not the merchant who shipped risk-free.
- A landlord who bears all the costs of maintaining and insuring a building is entitled to collect the rent — risk and reward belong to the same party.
Legal domains
Cite this maxim
NeCede Max. 12.12.14 — He at whose risk a thing is done, should receive the profits arising from it. — Black's, 2d. 1182; Weisman, 35q
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