Page 19 - Insurance Times October 2023

only surviving maritime loan contract from the period. The be under their absolute control until they have paid the sum
contract demonstrates the existence of a commercial code due under the agreement.
that tied together the economic lives of people from all over
the Greek world. Athenians and non-Athenians alike came And, if they do not pay it in the stipulated time, it shall be
to the port of Piraeus to trade freely: in "Against Lacritus," lawful for the lenders to pledge or to sell the security for
the merchants borrowing money for the voyage were from such price as can be obtained; and, if there is any deficiency
a city on the southern coast of Asia Minor, and the lenders in the money which is due to the lenders under the
financing the voyage were from a city outside Athens and agreement, it shall be lawful for the lenders, both or either
from another Greek city-state in the northeast, Boethiah. of them, to levy the amount by execution against Artemo
and Apollodorus, and against all their property, whether on
The port of Piraeus served as the point of departure for the land or sea, wheresoever they may be, in the same manner
voyage, but more importantly, it served as the legal venue as if a judgment had been recovered against them and they
in which the parties contracted. When the deal was broken, had committed default in payment. And if they do not enter
the ability of the lenders to sue for compensation over Pontus, but stay ten days after the rising of the dog-star in
events that occurred in the Black Sea--and the power of the Hellespont, and discharge their cargo in some place
Lacritus to defend himself using agreed upon rules of where the Athenians have no right of reprisals, and thence
evidence--are evidence of the complex infrastructure that return home to Athens, they shall pay the interest inserted
made long-distance trade possible. for the previous year in the agreement. And, if the ship in
which the goods are conveyed should meet with any
The agreement taken from theoration of Demosthenes irretrievable disaster, the security shall be saved, if possible,
against Lacritus is here given in full for the reader's and whatever is recovered shall be the joint property of the
understanding and reference to the "Demosthenes against creditors. And touching these matters nothing shall have
Zenothemis":- greater effect than the agreement.

Androcles of Sphettus and Nausicrates of Carystus, have lent We are interested in the insurance features of this
to Artemo and Apollodorus, both of Phaselis, 3000 drachms agreement.
in silver from Athens to Mende or Scione, and thence to
Bosporus, or, if they please, on the left coast as far as the It is to be noted, first of all, that the contract expressly
Borysthenes, and back to Athens, at an interest sum of 225 provides that all of the property of Artemo and Apollodorus,
drachms for the thousand. But in case, if they sail out of as well as the return cargo, to be purchased by them, is
Pontus to Hierum after the rising of Arcturus, they pay the made liable for the repayment of their loan. The agreement
sum at an interest of 300 drachms for the thousand, on the provides that if the security for the loan, when sold by the
security of three thousand casks of Mandaean wine, which creditors, shall prove deficient to meet the obligations, then
shall be conveyed from Mende or Scione in the twenty-oared the creditors are empowered to seize any other of the
vessel of which Hyblesius is the owner. debtor’s property, wherever it may be found, in the same
manner as if a judgment had been recovered. These
They hypothecate these goods, not owing upon them any features are concerned with the loan and security
money to any other person, nor will they borrow anything therefore.
further upon them. And they shall bring back to Athens in
the same vessel all the goods which they purchase in Pontus Our interest centers upon the clause that provides as a
for the return-cargo. And, if the goods are brought safe to condition precedent to repayment of the loan and interest,
Athens, the borrowers shall pay to the lenders the money (the money accruing due according to the agreement) the
accruing due according to the agreement within twenty safe arrival of the goods at Athens. This feature of the
days after their arrival at Athens, without any abatement, agreement introduces the insurance element. If the goods
except for jettison, which the passengers have made by offered as security for the advance are lost on the voyage,
common resolution, or for payments made to enemies, but the lender loses his money.
no deduction shall be allowed in respect of any other loss;
and they shall deliver the security entire to the lenders, to But if it arrives safely at the point of destination agreed upon

18 October 2023 The Insurance Times