A Comparative Analysis of Case Law Concerning Valuation of Monetary Debts after Their Maturity

Articles in Press

Document Type : Research Paper

Authors

1 University of Tehran

2 PhD Student in Private Law at UT, Tehran, Iran

Abstract

Two important stages are to be anticipated for a monetary debt, starting with the establishment of the debtor's obligation and ending with the debtor's payment. The first stage of the debt process begins at the time of its creation until it matures. This period is governed most significantly by the principle of nominalism. It should be noted, however, that the debt is subject to certain changes during that period, which are not the subject of the present paper and should be discussed elsewhere. As for the next stage, it covers the time period between the maturity date and the payment date. After discussing these two stages, the main question for the authors of this article is how and under what rules a debt increases in its quantum from maturity to extinction? Today, monetary debts undergo a great deal of change from the time of their creation to their eventual extinction. The most important factors affecting the quantum of monetary debts are the objective and subjective inflation rates. Additionally, losses incurred in the past must be compensated with a retrospective approach, and profits to be lost in the future must be compensated with a prospective approach. Iranian law has nevertheless mixed all these headings without making any distinction, establishing a concept known as Late Payment Damages (“khesāratē-ta’khirē-ta’diyē”) based on a decrease in the value of money.

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Journal of Legal Studies

Articles in Press, Accepted Manuscript
Available Online from 30 April 2025

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