Abstract
As a fact of commercial reality, the time value of money in the common law restitutionary
claim is assumed to be reflected by compound interest. Such assumption is a misperception,
as compound interest is a value that is independent from money. The user principle, in
measuring the time value, has failed to recognise this. However, that principle and time
value are not mutually exclusive. The user principle should take into account the independent
factor of time value. When money is contextualised in a functional approach, money could
be treated for its internal value (use value) or it could be held as wealth (exchange value).
According to what will be described as the narrow version of the division of ideologies of
property, the thing is unique and is possessed and held for its own quality, while what will
be described as the broad version treats the thing as having an exchange value and as being
held as a representation of wealth. In contextualising money under the broad version, the
user principle, as in Sempra Metal Ltd v IRC, failed to recognise the time value as an
independent factor from money itself This paper explains how the subsequent case
Benedetti v Sawiris prefers the "benefit choice" that embraces the user principle and offers
a more holistic approach for the common law restitutionary claim to be aligned with the
financial model of the time value of money.
| Original language | English |
|---|---|
| Pages (from-to) | 92-105 |
| Journal | Restitution Law Review |
| Volume | 23 |
| Publication status | Published - 2015 |
| Externally published | Yes |