Part III The Principle of Nominalism, 12 Nominalism, Legislation, and Public Policy

Subject(s):

Currency — Nominalism — Monetary obligations

This chapter presents the possible areas of objection to clauses which seek to avoid the application of the principle of nominalism. It appears to be accepted that the nominalistic principle as such does not of itself invalidate gold, index, or similar protective clauses. Although the point is not directly discussed in any English decision, it is nevertheless plain that English law treats such clauses as valid. The same position would appear to apply in other countries, even where nominalism has been placed on a statutory basis. It follows from this analysis that the nominalistic principle does not have the quality of mandatory law which can override the expressed intentions of the creditor and the debtor. The chapter then considers legal tender legislation, public policy, special legislation, and legislative policy surrounding protective clauses.