Legal Definitions - non numeratae pecuniae

Non numeratae pecuniae is a historical legal defense, originating from Roman law, which literally translates to "of money not paid." This defense was used when a person was sued for a debt, and they argued that the money they were supposed to have received, or that was supposed to have been paid out on their behalf, was never actually delivered or disbursed. In essence, it was a claim that the underlying financial transaction, which was the basis of the debt, never fully materialized because the funds were not actually transferred.

Here are some examples illustrating this concept:

• Imagine a scenario where a landowner, needing funds, signs a formal agreement to borrow a significant sum from a wealthy merchant. The agreement is notarized, and all paperwork is completed. However, due to an oversight or a change of heart by the merchant, the actual cash or funds are never transferred to the landowner's account. Later, the merchant attempts to sue the landowner for repayment of the "loan."

  In this situation, the landowner could invoke the defense of non numeratae pecuniae, arguing that the money was never actually paid to them, and therefore, no valid debt was ever created despite the signed agreement. The defense highlights that the fundamental condition for the debt—the actual transfer of funds—was not met.

• Consider a situation where a master craftsman agrees to build a custom piece of furniture for a patron. The patron agrees to pay a portion of the cost upfront, with the understanding that the craftsman will use this money to purchase specialized, expensive materials from a particular supplier. The patron pays the craftsman, but the craftsman, instead of buying the materials, uses cheaper, inferior substitutes and pockets the difference. When the patron discovers this upon delivery and refuses to pay the remaining balance, the craftsman sues for the full amount.

  The patron could argue non numeratae pecuniae regarding the portion of the payment intended for the specialized materials. While the money was physically paid to the craftsman, it was not "paid" in the sense of being disbursed for its intended purpose (purchasing specific materials on the patron's behalf). The defense would assert that the craftsman failed to fulfill the condition tied to that portion of the payment, thus invalidating the claim for the full amount.

• Let's say a wealthy individual agrees to act as a guarantor for a friend's business loan from a bank. The guarantor signs all the necessary documents, promising to repay the loan if the friend defaults. Unbeknownst to the guarantor, the bank, after the initial agreement, never actually disburses the loan funds to the friend's business due to an internal policy change or a last-minute credit review. The friend's business subsequently fails, and the bank attempts to collect the "loan" amount from the guarantor.

  The guarantor could raise the defense of non numeratae pecuniae. Their argument would be that since the principal loan money was never actually paid out to the friend's business, the primary debt never truly came into existence. Consequently, their obligation as a guarantor, which is secondary to the principal debt, should also be void because the "money not paid" means there's no underlying debt for them to guarantee.