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universul juridic magazin
Revista Română de Drept Privat

Principle of monetary nominalism and unpredictability in consumer loan agreement having as subject an amount of money: an irreconcilable association?

The monetary nominalism principle, which is manifest in a consumption loan agreement having as object an amount of money, although traditionally confirmed by the legislator and specialized doctrine, may frequently generate challenges between the creditor and the debtor due to the occurrence of consequential events in terms of currency “value”. Nevertheless, irrespective of the situation, this principle provided for both by the Old Civil Code and the New Civil Code cannot be denied. Still, what one cannot exclude is that the parties manage conventionally the monetary erosion risk issue (which may affect either the debtor or the creditor in the contractual relation) stipulating indexation or renegotiation clauses, and if depreciation produces specific effects, these may call on the hardship institution, recognized by the New Civil Code. The principle of monetary nominalism, characterizing the agreement at issue, is applicable regardless of the special capacities of the parties, including in a bank loan agreement.