A medium of exchange adopted or authorized by a domestic or foreign government.
See Our Sources· 40 primary sources
Cases
Statutes
How its tested
Common Examples
6
Risk Passes With Purchase Money
Malcolm McKinley signed a binding contract to buy land from Musa Mensah. Before closing a fire destroyed the house. Equity treats Mensah as owner of the purchase money so McKinley must still pay the full price.
Congress Borrows And Coins Money
Congress passed a statute authorizing the Treasury to borrow money on the credit of the United States and to coin money. The legislation regulates the value of domestic and foreign coin under the enumerated powers.
Lawyer Segregates Client Money
Maria Morales received a client retainer from Mustafa Mahmoud. She deposited the funds into a separate trust account maintained in her state rather than mixing them with her personal funds.
Monica Morgan breached a contract with Miguel Mendoza. The court entered judgment awarding Mendoza a sum of money equal to the amount due under the contract plus damages for the breach.
Will Pours Money Into Trust
Mercury Industries funded an inter vivos trust with cash during the testator's life. The will contained a pour-over provision adding additional money to the same trust at death.
Commingled Funds Support Veil Piercing
The owner of Momentum Capital commingled corporate money with personal funds and failed to observe corporate formalities. A creditor proved unity of interest and that adherence to the corporate fiction would sanction fraud.
3 common questions
Students Frequently Ask...
When does risk of loss on purchase money pass to the buyer?
Once a binding contract for the sale of land forms equity treats the seller as owner of the purchase money. In many jurisdictions the risk of loss therefore passes to the buyer at contract formation.
Supporting sources
What must a lawyer do with client funds received in a representation?
A lawyer must hold client money separate from the lawyer's own property in a separate account maintained in the state where the office is situated. Complete records must be kept for five years after termination.
Supporting sources
How is money defined for secured transactions purposes?
Money is a medium of exchange adopted or authorized by a domestic or foreign government. Currency bills and coins authorized by the federal government qualify under this definition.
money
helping customers use their products than on developing and manufacturing them. The document in Gateway's box includes promises of future performance that some consumers value highly; these…