25 Must-Know Legal Maxims on Contracts & Property Law (With Examples)

The Law Gurukul
Jun 19
3 min read

Legal maxims are the cornerstone of judicial reasoning, especially in contracts and property disputes. Whether you're a CLAT aspirant, law student, or legal professional, mastering these Latin phrases will sharpen your ability to analyze cases and draft stronger arguments.

In Part 2 of our 4-part series, we break down 25 essential maxims that govern agreements, ownership, and liabilities.

1. Pacta sunt servanda

Meaning: "Agreements must be kept."

Example: If Party A signs a contract to sell land to Party B, they cannot back out without consequences.

2. Caveat emptor

Meaning: "Let the buyer beware."

Example: Purchasing a used car "as is" means the buyer assumes responsibility for hidden defects.

3. Nemo dat quod non habet

Meaning: "No one can give what they don’t own."

Example: A thief cannot legally sell stolen goods—even if the buyer is unaware.

4. Lex loci contractus

Meaning: "Law of the place where the contract is made."

Example: A contract signed in France is governed by French law, unless specified otherwise.

5. Quantum meruit

Meaning: "As much as is earned."

Example: If a worker completes half a project before being fired, they can claim payment for work done.

6-25: Key Maxims for Contracts & Property

Maxim	Meaning	Example
6. Consensus ad idem	"Meeting of minds."	Both parties must agree on the same terms for a valid contract.
7. Contra proferentem	"Against the party who drafted the terms."	Ambiguous clauses in an insurance policy are interpreted against the insurer.
8. Ejusdem generis	"Of the same kind."	If a law bans "guns, knives, and other weapons," other weapons means similar items (not bombs).
9. In pari delicto	"In equal fault."	Courts may refuse to help two parties involved in an illegal contract.
10. Quicquid plantatur solo, solo cedit	"What is attached to the land becomes part of it."	A building constructed on leased land belongs to the landlord after the lease ends.
11. Res perit domino	"The loss falls on the owner."	If goods are destroyed before delivery, the seller bears the loss.
12. Uberrima fides	"Utmost good faith."	Insurance contracts require full disclosure of risks.
13. Ex nudo pacto non oritur actio	"No action arises from a naked agreement."	A verbal promise without consideration isn’t enforceable.
14. Locus standi	"Right to bring legal action."	Only an affected person can challenge a property dispute.
15. Per incuriam	"Through lack of care."	A judgment passed ignoring a key law can be overturned.
16. Sine qua non	"Without which not."	A necessary element (e.g., payment) to enforce a contract.
17. Volenti non fit injuria	"To one who consents, no harm is done."	A tenant cannot sue for injuries caused by a known property defect.
18. Jus tertii	"Right of a third party."	A squatter cannot claim ownership based on someone else’s rights.
19. Damnum sine injuria	"Damage without legal injury."	A competitor’s legal business causing you losses isn’t actionable.
20. In futuro	"In the future."	A contract clause may apply only after a certain date.
21. Ipso facto	"By the fact itself."	A contract automatically voids if its illegal purpose is exposed.
22. Mala fide possessor	"Bad faith possessor."	Someone occupying land knowing it’s not theirs cannot claim ownership.
23. Nemo plus juris transferre potest quam ipse habet	"No one can transfer more rights than they have."	Selling a leased car doesn’t override the lease agreement.
24. Quieta non movere	"Do not disturb settled things."	Courts avoid reopening long-resolved property disputes.
25. Tempus regit actum	"Time governs the act."	Laws at the time of signing apply to a contract.

Why Are These Maxims Important?

CLAT & Judiciary Exams: Frequently tested in legal reasoning sections.
Contract Drafting: Prevent loopholes by citing maxims like contra proferentem.
Court Arguments: Strengthen pleadings with authoritative Latin phrases.

How to Remember Them?

Flashcards: Write maxims on one side, meanings/examples on the other.
Case Linking: Associate maxims with landmark judgments (e.g., Balfour v Balfour for consensus ad idem).
Self-Quizzes: Test yourself with hypotheticals ("Which maxim applies if a contract is ambiguous?").