Legal Definitions - Money Demand

Money Demand refers to a legal claim for a specific, pre-determined amount of money that is already known and established.

Unlike claims for general damages, where a judge or jury (the "trier of fact") must assess and decide the appropriate compensation based on the evidence presented (for example, for pain and suffering or lost future income), a money demand involves an exact sum that is not subject to further calculation or estimation by the court. The amount being sought is fixed and ascertainable from the outset, often based on a contract, agreement, or statute.

• Example 1: Unpaid Rent

  Imagine a tenant who signed a lease agreeing to pay $1,800 per month in rent. If the tenant fails to pay rent for two months, the landlord has a money demand for $3,600 (two months at $1,800 each). The amount is fixed and clearly stated in the lease agreement, not something a court needs to estimate or calculate based on subjective factors.

• Example 2: Default on a Promissory Note

  A small business owner borrows $75,000 from a bank, signing a promissory note that specifies the repayment terms and an interest rate. If the business owner defaults and fails to repay the loan, the bank's claim for the outstanding principal balance plus any accrued interest, as stipulated in the note, constitutes a money demand. The exact amount owed is determined by the terms of the promissory note, not by a court's assessment of the bank's general losses.

• Example 3: Unpaid Invoice for Goods Sold

  A furniture manufacturer delivers a custom order of office chairs to a corporate client, and the agreed-upon price for the goods is $15,000, as detailed in the invoice. If the corporate client fails to pay the invoice, the manufacturer's claim for $15,000 is a money demand. The amount is a fixed sum for goods already delivered and accepted, not a subjective assessment of damages for a breach of contract that would require a judge or jury to determine the value of the loss.