Grotius’s Contribution to the Law of Secured Credit

Abstract

Over the centuries, Grotius’s writings on onderzetting (rights of hypothec) have been widely cited, particularly in the Netherlands and South Africa. This article investigates the originality and lasting impact of Grotius’s contributions to this field. The article follows the layout of the chapter on hypothecs of Grotius’s Inleiding tot de Hollandsche Rechts-geleertheyd. It examines Grotius’s translation of hypotheca as onderzetting, the structure of his Inleiding, the distinctions between various kinds of hypothec, and contemporary requirements for the creation of hypothecs. It then explores the right to follow encumbered assets into the hands of third parties and analyses the enforcement of hypothecs, priority issues in cases of competing hypothecs, and reflects on Grotius’s influence on Dutch security rights. In summary, although Grotius’s insights were largely derivative, often echoing interpretations of earlier scholars, they illustrate Grotius’s deep understanding of the influence of Germanic and Roman law on Roman-Dutch security rights. Grotius had a lasting impact on legal scholarship and practice because he was the first to provide a scholarly systematization of Roman-Dutch law within the framework of Justinian’s Institutes and firmly placed the rights of hypothec in the book on property rights of his Inleiding.