The phrase "tantum bona valent, quantum vendi possunt" translates to "goods are worth as much as they can be sold for." This legal maxim emphasizes that the true value of an item is determined by its marketability, or how much it can fetch in a sale. In essence, it reflects the principle that value is tied to demand and willingness to pay.
This term is commonly used in various areas of law, particularly in property law and estate planning. It plays a crucial role in determining the value of assets during transactions, such as sales, inheritances, or appraisals. Understanding this principle can help individuals navigate legal processes related to asset valuation, ensuring they are aware of how market conditions can influence the worth of their possessions.
Here are a couple of examples of abatement:
For instance, if a piece of artwork is appraised at $5,000 but only sells for $3,500 at auction, its worth is considered to be $3,500 based on the principle of "tantum bona valent, quantum vendi possunt." This reflects the actual market conditions rather than the appraised value.
(Hypothetical example) A family heirloom, valued at $10,000, may only bring $7,000 if sold at a garage sale. The true worth, according to this maxim, is $7,000.
| Term | Definition | Difference |
|---|---|---|
| Market Value | The price at which an asset would trade in a competitive auction setting. | Market value may reflect broader economic conditions, while this maxim focuses on actual sale outcomes. |
| Appraised Value | The estimated worth of an asset as determined by a professional appraiser. | Appraised value is often theoretical, while this maxim emphasizes real sale prices. |
If you are involved in a transaction where asset valuation is important, consider the market conditions and potential sale prices. It may be beneficial to conduct market research or consult a professional appraiser. Additionally, users can explore US Legal Forms' templates for legal documents related to asset sales and valuations, which can help streamline the process. If the situation is complex, seeking legal advice is recommended.
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It means that goods are worth as much as they can be sold for, emphasizing the importance of market conditions in determining value.