Rallo y Bagus: ¿Son VÁLIDOS los contratos de RESERVA FRACCIONARIA?

Juan Ramón Rallo defends contractual freedom to establish figures such as "demand accounts," distinct from deposit contracts. He argues that a deposit implies a 100% reserve where the depositary cannot use the funds, while a demand account contract, although it carries risks of default, is perfectly valid, legitimate, and functional for the market economy if the parties explicitly agree to it and are aware of its implications. Rallo emphasizes that the mere existence of risks does not invalidate a contract, and that the possibility of compensation can validate even impossible objectives. Philipp Bagus, for his part, counters that not all mutual agreements are valid, citing examples such as illicit contracts (murder), contracts with incapacitated parties (children, drugged individuals), incompatibility of wills, or impossibility of performance (travel to Venus, squaring a circle). It questions the validity of fractional-reserve deposit contracts, especially since most customers, according to empirical data, believe they have full access to their money, which would be incompatible with current banking practices and could be grounds for invalidity or illegitimacy. The discussion addresses the need for due diligence on the part of the contracting parties and transparency in information. 🔗 Link to the full conference:    • Juan Ramón Rallo y Philipp Bagus - Reserva...   00:00 Introduction 00:12 Juan Ramón Rallo: Contractual Freedom and Deposits 01:33 Rallo: Demand Deposit Contracts 03:06 Philipp Bagus: Not Every Agreement Is Valid 04:49 Bagus: Examples of Invalid Contracts 06:26 Rallo: Essential Requirements for a Contract 08:11 Rallo: The Possibility of Fulfilling the Contract 10:16 Bagus: Causes of Invalidity and Customer Perception 11:31 Bagus: The Incompatibility Between Availability and Fractional Reserves 12:26 Rallo: Customer Due Diligence ......... Help us continue and improve our work Become a member of the IJM: https://frapp.co/ngos/juandemariana/c... Become a member of our YouTube channel:    / @instjuandemariana   Make a donation: https://www.paypal.me/juandemariana Follow us on our social media: Website - https://www.juandemariana.org Instagram -   / juandemariana   Facebook -   / juan.de.mariana   Twitter -   / juandemariana   LinkedIn -   / instituto-juan-de-mariana   Telegram - https://t.me/juandemariana