Moratorium is a word that can often be heard on TV screens. It is often associated with the topic of arms limitation. But this term has other interpretations that relate to the legal and economic fields. You can learn more about the meaning of "moratorium" in the article.
Dictionary statements
It says the following about the meaning of the word "moratorium".
- This is an economic term for deferring payments on existing debt. The deferral is granted for a period of time or until certain circumstances occur.
- In the economy, a moratorium is a cessation of payments on debts that is not specified in terms.
- Also in economics, this is a documented statement by the borrower that he is unable to pay the debt or part of it.
- In jurisprudence, this is an agreement between states that implies a postponement or abstention from any action, for a period that can be designated or indefinitely.
Next about thatmeans "moratorium", will be discussed in more detail.
In the economy
Moratorium is a Latin word meaning "slowing down", "delaying". This is a right granted for the purpose of deferring payment of debts. It is granted either administratively or judicially. It must be distinguished from the delay indicated in the contract between counterparties. There are special and general moratoriums.
The first one is provided for a specific legal relationship. And the second, which is also called the general one, is introduced during the period of disasters that have befallen the country: during the war, epidemic, crisis. Then the laws of obligation are suspended, and debt relief is granted to all the inhabitants of the country.
The custom of granting a moratorium to debtors appeared in Rome, under Emperor Constantius I. He, like his successors, delayed the fulfillment of obligations to persons who were close to the court. Under Gratian, Valentinian II and Theodosius, the tradition had already been formed and they turned it into a system. Under Justinian, it was established that in order to satisfy a request for a delay, the consent of a majority of creditors is necessary. Upon receipt, the minority is bound by such a decision. In this case, the delay cannot be more than five years.
In Western Europe, the moratorium appears in the XIV century under the influence of Roman law. It had the appearance of a privilege given in abundance to bankrupt nobles. In the Middle Ages, a broader concept appeared - "indult". First itdenoted a reprieve, and later any privilege. Over time, the moratorium acquired the character of a legal institution, enshrined at the legislative level as one of the conditions for bankruptcy.
In international law
In this area, a moratorium is a delay that is given when fulfilling obligations under contracts. And also means refraining from certain actions before the circumstances that affect this legal relationship come or end. Subjects of international law that have an interest in the issue can agree on this.
In most situations, such an agreement is based on the principle of reciprocity. However, there are many examples in the history of diplomatic relations when a moratorium was declared unilaterally. Thus, it was declared twice by the Soviet Union in 1985. This applied to the deployment of its own combat missiles with medium range, as well as to the conduct of any nuclear tests.
In civil law
Here, a moratorium is a delay in the performance of an obligation caused by circumstances beyond the control of the parties to the transaction or other legal relations. The latter are equated: war, state of emergency, natural disaster. From the definition of a moratorium follows a close relationship with the concept of liability following failure to fulfill obligations.
A party to a treaty who suffers a violation of her rights has the opportunity to seek their protection within a certain period of time, underwhich understand the statute of limitations. There are situations when it is either extended or its course is suspended. In Art. 202 of the Civil Code of the Russian Federation there is an indication of the deferment of the fulfillment of obligations established by the government of the Russian Federation. There is a law in the UK that provides for the possibility of postponing the satisfaction of creditors if the party to the obligation is in captivity.
