C.4.2.8: ESTIMATED VALUE

This rescript imparts important information: prior to delivery of the object the parties had agreed upon its value, the borrower had delivered gold in pledge, and the lender had stipulated interest of more than 12 per cent.

The salient fact that the parties had placed an estimated value on the object, which amount would be claimable, has been hailed as an important step within legal development. It is submitted that it is difficult to visualise the transaction under discussion without such valuation, because in that case the lender would be at the mercy of the borrower. The latter would be in the position to sell below the value and would only be liable for the realised price.^[746] In reality, the borrower is at the mercy of the lender, and the text indicates that the petitioner objected to both the amount of the principal^[747] and the rate of interest. The petitioner’s argument that the pledged gold was worth less than the estimated value of the delivered object may be an indica­tion that the estimate exceeded the proceeds. The construct reeks of usury, as the borrower is indebted for much more than he actually received and pays 12 per cent on this fictitious amount. Viewed from this perspective, a meaningful interpretation of C.4.32.25 becomes possible.^[748]

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