Comparative Law Review

Comparative Law Review

Analysis of the Determination and Conversion of Money of Account, Money of Payment, and Money of Forum; A Comparative Study of Iranian Law and Common Law

Document Type : Research Paper

Authors
Hassan Mohseni 1
Taha Arabasadi 2
Amir Ghaffari 2
1 Prof., Faculty of Law & Political Science, University of Tehran, Tehran, Iran
2 PhD in Private Law, Faculty of Law & Political Science, University of Tehran, Tehran, Iran
10.22059/jcl.2025.387244.634705
Abstract
This article examines the distinction between money of payment, money of account, and money of the forum as well as how to determine them, the laws governing each, and the date and rate at which they can be converted into each other, in contractual and non-contractual aspects of disputes. Therefore, the authors are faced with the question of how to distinguish between money of account, money of payment, and money of the forum, and when and how they are converted into one another? Through an analytical-descriptive and comparative approach, and the use of library resources, the authors have concluded that, in order to distinguish money of account from money of payment, the lex causae must first be identified, and then it is necessary to interpret these two monies and to consider the maturity of the contract as a criterion for converting money of account into money of payment. Nevertheless, this distinction and consequently this conversion will not apply to non-contractual issues. Once the money of payment has been determined, if the court issuing the judgment permits, the payment will be made in the money of payment. Otherwise, the payment will inevitably have to be converted into the currency of the forum, thus raising the question of how and when this conversion will occur.
Keywords
Money of Account
Money of Payment
Money of Forum
Exchange Rate
Exchange Date.
Subjects
- Books
1.     Black, Vaughan (2010). Foreign Currency Claims in the Conflict of Law. Oxford: HART Publishing.
2.     Howard, Micheal; Knott, Johnn; Kimbell (2015). John. Foreign Currency, Claims, Judgement and Damages. 6thed. Oxford: Routledge.
3.     Katouzian, Amir Naser (2019). Iranian Civil Law, General Principles of Contract, 9thed. Vol. 3. Tehran: Sahami Inteshar (In Persian).
4.     Proctor, Charles (2012). Mann on the Legal Aspect of Money. 7thed. Oxford: Oxford University Press.
5.     Safaei, Hossein & Rahimi, Habibola’h (2014). Civil Liability (Non-Contractual Obligation). 7thed. Tehran: Samt (In Persian).
6.     Modarresi Tabatabaei Yazdi, Mohammad Reza (2022). The Fiqh of Rights and Financial I’tibarat. 2nded. Qom: Intesharat Howzah Ilmie’h (In Persian).
 
A) Articles
7.     Amini, Ebrahim (2013). Comparison Study of Price Payment Method and its Determination in Iranian Law, Principles of International Commercial Contracts and Convention on Contracts for the International Sale of Goods, Vienna, 1980, Comparative Law Review, 4 (1), 23-39, 10.22059/jcl.2013.35228 (In Persian).
8.     Guy, David (1986). Money in Canadian Law. Canadian Bar Review, 65 (1), 192-223.
9.     Javaherkalam, Mohammad Hadi (2020). Evaluation Criteria “Corporeal Injury”; Fixed or Case Evaluation System; A Comparative Study in Islamic, Iranian, French and English Law, Comparative Law, 3 (8), 54-92, 10.22034/law.2021.525117.1047 (In Persian).
10.  Mirshekari, Abbas & Hosseini, FatemehSadat (2023). A Comparative Study of the Way of Compensation for Moral Damages: with Emphasizing the Judicial Procedure of Iran. The Judiciary Law Journal, 87 (121), pp. 351-378, 10.22106/jlj.2022.544179.4557 (In Persian).
11. Taheri, AzadehSadat (2018). Payment of Foreign Currency as Salary, Ra’y Journal, 7 (23), 65-70, 10.22106/jcr.2019.86350.1158 (In Persian).
 
B) Cases
12. Barclays Bank International Ltd. v. Levin Brothers (Bradford) Ltd. [1976] 3 All E.R. 900 at p. 911.
13. Barry and Others v. Van Den Hurk [1920] 2 K.B. 714.
14. Batavia Times Publishing Co. v. Davis [1978] 88 D.L.R. (3d) 144. 11.
15.  BP Exploration Co. (Libya) v. Banker Hunt (No. 2), [1979] 1 W.L.R. 783 (16 March 1979).
16. Celia (Owner) v. SS Volturno (Owner) (1921) 8 LI.L.Rep. 139 House of Lords.
17. Commerzbank AG v. Large 1977 SLT 219 (IH).
18. Folias, The [1977] 1 Lloyd’s Rep. 39 (QB).
19. Gatineau Power Company v. Crown Life Insurance Company, 1945, S.C.R. 655.
20. Hoppe v. Russo-Asiatic Bank, 200 App. Div. 460, 193 NYS 250, 200 AD 460 – 1922.
21. Jean Kraut AG v. Albany Fabric Ltd. [1977] Q.B. 182.
22.  John Lavington Bonython and Others v. Commonwealth Australia, 1952 AC 201 – 1952.
23. Lebeaupin v. Crispin, 1920 KB 2 714 – 1920.
24. Lines Bros (in Liquidiation). In re [1983] Ch 1 (CA).
25. Miliangos v. George Frank (Textiles) Ltd. [1976] AC 443 (HL) 25-32.
26. Owners of the Elftherotria v. Owner of the Despina R Di Ferdinando v. Simon, Smith & Co. Ltd. [1920] 3 KB 409 (CA).
27. Quartier v. Farah, 429 S.E.2d. 626 (1993).
28. Schorsh Meier GmbH v. Henin [1975] QB 416 (CA).
29. Societe des Hotels Le Touquet Paris-Plage v. Cummings [1921] 3 KB 459.
30. The Hu, The [1970] P 106 CA.
31. United Railways of Havana and Regla Warehouse Ltd. [1961] AC 1007 (HL).
32. Woodhouse AC Israel Cocoa Ltd SA v. Nigeria Produce Marketing Co Ltd. 1 AllER 665 – 1971.
Comparative Law Review
Volume 17, Issue 1 - Serial Number 33
Spring & Summer 2026
August 2026
Pages 259-280