Book 9 / Chapter 1
Paragraph 5 - Assessment and Value in Voluntary Contracts
Explanation - Part By Part
"We see this happening too with things put up for sale, and in some places there are laws providing that no actions shall arise out of voluntary contracts, on the assumption that one should settle with a person to whom one has given credit, in the spirit in which one bargained with him."
Aristotle is pointing out that this principle of fairness in exchanges also applies to situations where goods are bought and sold. In some places, there are even specific laws to prevent disputes from arising in voluntary agreements (like contracts made willingly between two parties). The idea is that once you’ve agreed on the terms of the deal, especially when trust or credit is involved, you should follow through based on the understanding you originally had with the other person. Essentially, Aristotle is emphasizing the importance of keeping your word and respecting the initial terms of the agreement, even when things might seem different afterward.
"The law holds that it is more just that the person to whom credit was given should fix the terms than that the person who gave credit should do so."
Aristotle is pointing out that fairness is better achieved when the person who receives the loan or credit (the debtor) is the one to determine the value or terms for repayment, rather than the person who provided the credit (the creditor). This is because it prevents the creditor from exploiting the situation by setting unfair or overly burdensome conditions. In essence, the person who benefits from the credit should acknowledge the value they received and offer a return that aligns with their original expectations, rather than the creditor unilaterally deciding what is owed. This reflects Aristotle’s focus on balance and fairness in human exchanges.
"For most things are not assessed at the same value by those who have them and those who want them; each class values highly what is its own and what it is offering; yet the return is made on the terms fixed by the receiver."
Aristotle is pointing out a very human tendency: people tend to value what they already own or are offering more highly than what someone else possesses or is offering them. This is because of subjective perception—things feel more valuable to us simply because they are ours, or because they are what we are bringing into the exchange.
Yet, despite this natural imbalance, Aristotle notes that when a trade or exchange takes place, the terms are generally determined by the person receiving the goods or services. This is because the "receiver" is the one who ultimately has to decide if the value they are receiving matches up to what they gave or were promised in return. Essentially, the receiver becomes the judge of fairness in the transaction, highlighting the subjective nature of value in human interactions.
"But no doubt the receiver should assess a thing not at what it seems worth when he has it, but at what he assessed it at before he had it."
Aristotle is saying that when someone receives something, they shouldn't judge its value based on how much they appreciate or value it after they have it in their possession. Instead, they should evaluate it based on the value they believed it had before they received it—when they were the one wanting or negotiating for it.
The idea here is to avoid bias that can come from ownership or immediate gratification, as people tend to overvalue what they already possess or undervalue the service or good they received compared to the effort or worth offered during the initial agreement. Essentially, fairness requires sticking to the original perspective and agreed-upon value, rather than shifting it due to personal feelings after the fact.