HAMMURABI


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This is one of the earliest expositions of the legal and economic doctrine that if a borrower is made unable to pay the interest and principle of the loan by an act beyond anyone’s control. The obligation to pay for that year is cancelled. In modern times most cultures go the other way. When the banks caused the economic Meltdown of 2008, millions of Americans could not pay their loan obligations and mortgages. They received no relief whereas in the “primitive” world of 4,000 years ago they would have relief for that year. Note the subtle difference in Hammurabi {611462} where someone had prepaid and rented land for a year and the crop fails, and this situation where there is borrowed money.


Note the subtle difference between this situation where a man rents land for a year and takes the risk, and {630755} where there is a loan of a mortage in which case, relief of payment is given for the year.


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Hammurabi
Hammurabi
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Hammurabi (c. 1810 – c. 1750 BC) was the sixth king of the First Babylonian dynasty of the Amorite tribe, reigning from c. 1792 BC to c. 1750 BC (according to the Middle Chronology). He was preceded by his father, Sin-Muballit, who abdicated due to failing health. During his reign, he conquered Elam and the city-states of Larsa, Eshnunna, and Mari. He ousted Ishme-Dagan I, the king of Assyria, and forced his son Mut-Ashkur to pay tribute, bringing almost all of Mesopotamia under Babylonian rule.