Part III The Principle of Nominalism, 9 Monetary Obligations, Liquidated Sums, and the Principle of Nominalism

Subject(s):

Nominalism — Liquidated and unliquidated monetary obligations

This chapter illustrates the principle of nominalism. It is implicit in the principle of nominalism that an obligation expressed in money is intended to have a uniform and unvarying value, which is not affected by supervening events which are extraneous to the monetary system itself. The main practical consequence of the application of the nominalistic principle may be briefly stated—the creditor of the sum in question bears the risk that the purchasing power of the contractual currency will have fallen by the time the date of payment arrives, while the debtor bears the converse risk. The chapter then traces the historical development of nominalism. It also considers the effects of the principle of nominalism in relation to: debts governed by English law, debts governed by foreign laws, claims for interest and damages generally, domestic monetary depreciation and a claim for damages following a default in payment, foreign monetary depreciation, the discharge and termination of contracts, the collapse of a currency, and the remedy of specific performance.