Part III The Principle of Nominalism, 10 Monetary Obligations—Unliquidated Amounts

Subject(s):

Liquidated and unliquidated monetary obligations

This chapter focuses on unliquidated amounts. Nominalism has developed and operated in the context of liquidated sums. It must follow that the principle of nominalism can only apply to fixed or stated sums and that the principle cannot apply to obligations involving an unliquidated amount or claim. Instead, the extent of unliquidated amounts depends upon the principles applicable to the relationship at issue; it does not depend upon the law of money. It is the law of damages, breach of trust, restitution, agency, or other legal area which must determine the relevance and impact of variations in monetary value. In all these cases, the claims are unliquidated and require assessment by means of a valuation in terms of money. The extent of these obligations—and the outcome of the valuation process—depends upon the time and criteria by reference to which such process is carried out. The chapter then considers the approach adopted by the English courts in this area, followed by a review of the position adopted by courts in the United States.