The Validity of Compensation for Currency Depreciation in Case of Debt Contract’s Stipulation of an Option

There is no doubt that the existence of inflation will cause a depreciation of the currency. The question arises here: if one person lends another a certain amount, should the debtor in agreed time only return the same amount (nominal value) or if he or she is also the guarantor of the depreciation...

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Bibliographic Details
Main Authors: Seyyed Hosein Mousavirad, Seyyed Jaaber Mousavirad
Format: Article
Language:fas
Published: Razavi University of Islamic Sciences 2024-05-01
Series:آموزه‌‌های فقه مدني
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Online Access:https://cjd.razavi.ac.ir/article_1761_fe8d4b819b4e63b98c7719f2f8d3ea0c.pdf
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Summary:There is no doubt that the existence of inflation will cause a depreciation of the currency. The question arises here: if one person lends another a certain amount, should the debtor in agreed time only return the same amount (nominal value) or if he or she is also the guarantor of the depreciation of the money. In this regard, some have considered the necessity of the guarantee of depreciation of the currency and some do not accept the guarantee of currency depreciation and some have differentiated between the case of high inflation and low inflation and others have detailed between usurpation and non-usurpation. It has been concluded in this article, while analyzing the nature of money and emphasizing the credibility of the value of money that if a person lends an amount to another and during the contract stipulates that the debtor must calculate and pay the depreciation of the money in addition to the nominal value according to inflation, complying with this condition is required and paying the amount equivalent to the amount of depreciation of the money is not considered augmentation in debt contract and it is not usury, but if the condition for the reduction of the value of the currency has not been fulfilled in the debt contract, it is not necessary to compensate for the depreciation of the currency (whether in the case of low or high inflation).
ISSN:2251-936X
2783-3690