Understanding Valorem: The Latin Word for Value-Based Pricing

Valorem is a Latin word that means "according to value" or "based on value". It is often used in legal and financial contexts to indicate that something is priced or assessed based on its worth or value, rather than being fixed at a set amount.

For example, a valuation report might be described as a "valuation report valorem", indicating that the values of the assets being evaluated are determined based on their actual worth, rather than being fixed at a set price. Similarly, a contract might include a clause stating that payments will be made "valorem", meaning that the amount paid will be based on the value of the goods or services provided, rather than being fixed at a set amount.

Overall, the term "valorem" is used to emphasize that something is priced or assessed based on its value, rather than being fixed at a set amount.