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Status:

Positive or Neutral Judicial Treatment House of Lords 16 May 1884

*605 John Weston Foakes v Julia Beer

(1884) 9 App. Cas. 605

Earl of Sel orne L!"! # Lord $lac% urn # Lord &atson # and Lord 'it()erald ! 1884 May 16 Accord and SatisfactionDebtor and CreditorContractConsiderationContract by Creditor to take less than Sum due. *n a)reement et+een ,ud)ment de tor and creditor# t-at in consideration of t-e de tor .ayin) do+n .art of t-e ,ud)ment de t and costs and on condition of -is .ayin) to t-e creditor or -is nominee t-e residue y instalments t-e creditor +ill not ta%e any .roceedin)s on t-e ,ud)ment# is nudum .actum# ein) +it-out consideration# and does not .revent t-e creditor after .ayment of t-e +-ole de t and costs from .roceedin) to enforce .ayment of t-e interest u.on t-e ,ud)ment! So Held affirmin) t-e decision of t-e "ourt of *..eal! Pinnel/s "ase! 01 2e.! 113 a4 and "um er v! &ane 01 Str! 4564 follo+ed ! *PPE*L from an order of t-e "ourt of *..eal 1 ! 6n t-e 11t- of *u)ust 1831 t-e res.ondent recovered ,ud)ment a)ainst t-e a..ellant for 75833 13s! 5d! for de t and 719 1s! 18d! for costs! 6n t-e 51st of :ecem er 1836 a memorandum of a)reement +as made and si)ned y t-e a..ellant and res.ondent in t-e follo+in) terms:; <&-ereas t-e said Jo-n &eston 'oa%es is inde ted to t-e said Julia $eer# and s-e -as o tained a ,ud)ment in Her Ma,esty/s Hi)- "ourt of Justice# E=c-e>uer :ivision# for t-e sum of 758?8 1?s! *nd +-ereas t-e said Jo-n &eston 'oa%es -as re>uested t-e said Julia $eer to )ive -im time in +-ic- to .ay suc- ,ud)ment# +-ic- s-e -as a)reed to do on t-e follo+in) conditions! No+ t-is a)reement +itnesset- t-at in consideration of t-e said Jo-n &eston 'oa%es .ayin) to t-e said Julia $eer on t-e si)nin) of t-is a)reement t-e sum of 7188# t-e recei.t +-ereof s-e dot- -ere y ac%no+led)e in .art satisfaction of t-e said ,ud)ment de t of 758?8 1?s!# and on condition of -is .ayin) to -er or -er e=ecutors# administrators# assi)ns or nominee t-e sum of 7118 on t-e 1st day of July and t-e 1st day *606 of January or +it-in one calendar mont- after eac- of t-e said days res.ectively in every year until t-e +-ole of t-e said sum of 758?8 1?s! s-all -ave een fully .aid and satisfied# t-e first of suc- .ayments to e made on t-e 1st day of July ne=t# t-en s-e t-e said Julia $eer -ere y underta%es and a)rees t-at s-e# -er e=ecutors# administrators or assi)ns# +ill not ta%e any .roceedin)s +-atever on t-e said ,ud)ment!@ T-e res.ondent -avin) in June 1885 ta%en out a summons for leave to .roceed on t-e ,ud)ment# an issue +as directed to e tried et+een t-e res.ondent as .laintiff and t-e a..ellant as defendant +-et-er any and +-at amount +as on t-e 1st of July 1885 due u.on t-e ,ud)ment! *t t-e trial of t-e issue efore "ave J! it +as .roved t-at t-e +-ole sum of 758?8 1?s! -ad een .aid y instalments# ut t-e res.ondent claimed interest! T-e ,ury under -is Lords-i./s direction found t-at t-e a..ellant -ad .aid all t-e sums +-ic- y t-e a)reement of t-e 51st of :ecem er 1836 -e undertoo% to .ay and +it-in t-e times t-erein s.ecified! "ave J! +as of o.inion t-at +-et-er t-e ,ud)ment +as satisfied or not# t-e res.ondent +as# y reason of t-e a)reement# not entitled to issue e=ecution for any sum on t-e ,ud)ment! T-e Aueen/s $enc- :ivision 0&at%in &illiams and Mat-e+ JJ!4 disc-ar)ed an order for a ne+ trial on t-e )round of misdirection! T-e "ourt of *..eal 0$rett M!2!# Lindley and 'ry L!JJ!4 reversed t-at decision and entered ,ud)ment for t-e res.ondent for t-e interest due# +it- costs 5 ! Marc- 91# *.ril 1! W. H. Holl A!"! for t-e a..ellant:; *.art from t-e doctrine of "um er v! &ane 9 t-ere is no reason in sense or la+ +-y t-e a)reement s-ould not e valid# and t-e creditor .revented from enforcin) -is ,ud)ment if t-e a)reement e .erformed! Bt may often e muc- more advanta)eous to t-e creditor to o tain immediate .ayment of .art of -is de t t-an to +ait to enforce .ayment# or .er-a.s y .ressin) -is de tor to force -im into an%ru.tcy +it- t-e result of only a small dividend! Moveover if a com.osition is acce.ted friends# *607 +-o +ould not ot-er+ise do so# may e +illin) to come

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for+ard to assist t-e de tor! *nd if t-e creditor t-in%s t-at t-e acce.tance of .art is for -is enefit +-o is to say it is notC T-e doctrine of "um er v! &ane 4 -as een continually assailed# as in "ouldery v! $artrum 1 y Jessel M!2! Bn t-e note to "um er v! &ane 6 01 Smit- L! "! 4t- ed! .! 519# 8t- ed! .! 9634 +-ic- +as +ritten y J! &! Smit- and never disa..roved y any of t-e editors# includin) &illes and Deatin) JJ!# it is said <t-at its doctrine is founded u.on vicious reasonin) and false vie+s of t-e office of a "ourt of la+# +-ic- s-ould rat-er strive to )ive effect to t-e en)a)ements +-ic- .ersons -ave t-ou)-t .ro.er to enter into# t-an cast a out for su tle reasons to defeat t-em u.on t-e )round of ein) unreasona le! "arried to its full e=tent t-e doctrine of "um er v! &ane 3 em races t-e e=.loded notion t-at in order to render valid a contract not under seal# t-e ade>uacy as +ell as t-e e=istence of t-e consideration must e esta lis-ed! *ccordin)ly in modern times it -as een# as a..ears y t-e .recedin) .art of t-e note# su ,ected to modification in several instances!@ "um er v! &ane 8 +as decided on a )round no+ admitted to e erroneous# vi(! t-at t-e satisfaction must e found y t-e "ourt to e reasona le! T-e "ourt cannot in>uire into t-e ade>uacy of t-e consideration! 2eynolds v! Pin-o+e ? # +-ic+as not cited in "um er v! &ane 18 nor in 'itc- v! Sutton 11 # decided t-at t-e savin) of trou le +as a sufficient considerationE <for it is a enefit unto -im to -ave -is de t +it-out suit or c-ar)e!@ T-is decision +as cited +ita..roval y Littledale J! in &il%inson v! $yers 15 ! Pinnel/s "ase 19 +as decided on a .oint of .leadin): t-e dictum t-at .ayment of a smaller sum +as no satisfaction of a lar)er# +as e=traF,udicial# and overloo%ed all considerations of mercantile convenience# suc- as mentioned in 2eynolds v! Pin-o+e 14 E and it is also noticea le t-at it +as a case of a ond de t sou)-t to e set aside y a .arol a)reement! Bt is every day .ractice for tradesmen to ta%e less in satisfaction of a lar)er sum# and )ive discount# +-ere t-ere is neit-er custom nor ri)-t to ta%e credit! T-e reasonin) in *608 Heat-cote v! "roo%s-an%s 11 and T-omas v! Heat-orn 16 is inconsistent +it- later decisions: see Si ree v! Tri.. 13 # +-ere a .romissory note for a smaller sum +as -eld a satisfaction of t-e de t# and "urle+is v! "lar% 18 # a similar decision as to a ill! 'itc- v! Sutton 1? +ill e cited contrG# ut is clearly +ron)! T-e a)reement to .ay t-e res.ondent/s nominee is )ood consideration! * c-e>ue is sufficient consideration: Hoddard v! 6/$rien 58 ! Bt -as often een -eld t-at a s-eet of .a.er or a stic% of sealin) +a= is a sufficient consideration! T-e result of t-e cases is t-at if "um er v! &ane 51 e ri)-t# .ayment of a less sum t-an t-e de t due# y a ill# .romissory note or c-e>ue is a )ood disc-ar)eE ut .ayment of suc- less sum y soverei)ns or $an% of En)land notes is not! Here t-e a)reement is not to ta%e less t-an t-e de t# ut to )ive time for .ayment of t-e +-ole +it-out interest! Man%ind -ave never acted on t-e doctrine of "um er v! &ane 55 # ut t-e contraryE nay fe+ are a+are of it! $y overrulin) it t-e House +ill only declare t-e universal .ractice to e )ood la+ as +ell as )ood sense! IE*2L 6' SEL$62NE# L!"!:;&-atever may e t-e ultimate decision of t-is a..eal t-e House is mucinde ted to Mr! Holl for -is e=ceedin)ly a le ar)ument!J Winch follo+ed on t-e same side# and contended t-at on t-e true construction of t-e a)reement no .rovision +as made for interest! Bompas A!"! 0 askell +it- -im4 for t-e res.ondent:; T-e a)reement +as not intended to and does not de.rive t-e res.ondent of -er ri)-t to interest! $ut if it does it is void for +ant of consideration! T-ere is a stron) current of aut-ority t-at +-at t-e la+ im.lies as a duty is no consideration! T-erefore +-ere a de t is due .art .ayment is no reason for )ivin) u. t-e residue! T-e doctrine is too +ell settled to e no+ overt-ro+n: see a lon) list of aut-orities# amon) +-ic- it is enou)- *609 to refer to :i=on v! *dams 59 E 2ic-ards v! $artlet 54 E Horin) v! Horin) 51 E Hean) v! S+aine 56 E McManus v! $ar% 53 E 'itc- v! Sutton 58 E *dams v! Ta.lin) 5? E :o+n v! Hatc-er 98 E Evans v! Po+is 91 ! Bn t-e cases in +-ic"um er v! &ane 95 -as een de.arted from t-e Jud)es admit its .rinci.le# ut distin)uis- t-e facts! Hoddard v! 6/$rien 99 +as +ron)ly decided! Bt is contrary to .u lic .olicy to ma%e t-e .erformance of a le)al duty a )ood considerationE see t-e cases on seamen/s +a)es: Stil% v! Myric%94 E Harris v! &atson 91 E Ne+man v! &alters 96 E "lutter uc% v! "offin 93 E Harris v! "arter 98 ! &-ere la+ and .ractice are so +ell esta lis-ed t-is House +ill not no+ de.art from t-em: see t-e o servations in :anford v! Mc*nulty 9? ! T-e "ourt +ent even furt-er t-an "um er v! &ane 48 in Lovelace v! "oc%et 41 # +-ere to an action on a ond for t-e .ayment of money at a certain day# a .lea t-at t-e .laintiff at t-e day of .ayment acce.ted anot-er ond for t-e .ayment of t-e money in satisfaction# +as on demurrer <-eld to e a nau)-ty .lea# for one ond cannot overt-ro+ anot-er!@ *nd so in Ha+es v! $irc- 45 it +as -eld t-at <one t-in) in action cannot e satisfaction for anot-er t-in) in action!@ Holl A!"! in re.ly:; T-e cases a out seamen/s +a)es -ave al+ays een ased on >uestions of .u lic .olicy: see Harris v! &atson 49 ! :i=on v! *dams 44 +as commented u.on y Littledale J! in &il%inson v! $yers 41 ! 2ic-ards v! $artlet 46 and Hean) v! S+aine 43 +ere decided on t-e )round t-at a .lea of accord +it-out satisfaction is no ar! Bn :o+n v! Hatc-er 48 no reasons for t-e decision *610 +ere )iven# and it +as dou ted y Par%e $! in "oo.er v! Par%er 4? !

he !ouse took ti"e #or $onsi%eration. &a' 16.

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E*2L 6' SEL$62NE L!"!:; My Lords# u.on t-e construction of t-e a)reement of t-e 51st of :ecem er 1836# B cannot differ from t-e conclusion in +-ic- ot- t-e "ourts elo+ +ere a)reed! Bf t-e o.erative .art could .ro.erly e controlled y t-e recitals# B t-in% t-ere +ould e muc- reason to say t-at t-e only t-in) contem.lated y t-e recitals +as )ivin) time for .ayment# +it-out any relin>uis-ment# on t-e .art of t-e ,ud)ment creditor# of any .ortion of t-e amount recovera le 0+-et-er for .rinci.al or for interest4 under t-e ,ud)ment! $ut t-e a)reement of t-e ,ud)ment creditor# +-ic- follo+s t-e recitals# is t-at s-e <+ill not ta%e any .roceedin)s +-atever on t-e ,ud)ment#@ if a certain condition is fulfilled! &-at is t-at conditionC Payment of t-e sum of 7118 in every -alf year# <until t-e +-ole of t-e said sum of 758?8 1?s!@ 0t-e a))re)ate amount of t-e .rinci.al de t and costs# for +-ic- ,ud)ment -ad een entered4 <s-all -ave een fully .aid and satisfied!@ * .articular <sum@ is -ere mentioned# +-ic- does not include t-e interest t-en due# or future interest! &-atever +as meant to e .aya le at all# under t-is a)reement# +as clearly to e .aya le y -alfFyearly instalments of 7118 eac-E any ot-er construction must necessarily ma%e t-e conditional .romise nu)atory! $ut to say t-at t-e -alfFyearly .ayments +ere to continue till t-e +-ole sum of 758?8 1?s!# <and interest t-ereon#@ s-ould -ave een fully .aid and satisfied# +ould e to introduce very im.ortant +ords into t-e a)reement# +-ic- are not t-ere# and of +-ic- B cannot say t-at t-ey are necessarily im.lied! *lt-ou)-# t-erefore# B may 0as indeed B do4 very muc- dou t +-et-er t-e effect of t-e a)reement# as a conditional +aiver of t-e interest to +-ic- s-e +as y la+ entitled under t-e ,ud)ment# +as really .resent to t-e mind of t-e ,ud)ment creditor# still B cannot deny t-at it mi)-t -ave t-at effect# if ca.a le of ein) le)ally enforced! *611 $ut t-e >uestion remains# +-et-er t-e a)reement is ca.a le of ein) le)ally enforced! Not ein) under seal# it cannot e le)ally enforced a)ainst t-e res.ondent# unless s-e received consideration for it from t-e a..ellant# or unless# t-ou)- +it-out consideration# it o.erates y +ay of accord and satisfaction# so as to e=tin)uis- t-e claim for interest! &-at is t-e considerationC 6n t-e face of t-e a)reement none is e=.ressed# e=ce.t a .resent .ayment of 7188# on account and in .art of t-e lar)er de t t-en due and .aya le y la+ under t-e ,ud)ment! T-e a..ellant did not contract to .ay t-e future instalments of 7118 eac-# at t-e times t-erein mentionedE muc- less did -e )ive any ne+ security# in t-e s-a.e of ne)otia le .a.er# or in any ot-er form! T-e .romise de futuro +as only t-at of t-e res.ondent# t-at if t-e -alfFyearly .ayments of 7118 eac- +ere re)ularly .aid# s-e +ould <ta%e no .roceedin)s +-atever on t-e ,ud)ment!@ No dou t if t-e a..ellant -ad een under no antecedent o li)ation to .ay t-e +-ole de t# -is fulfilment of t-e condition mi)-t -ave im.orted some consideration on -is .art for t-at .romise! $ut -e +as under t-at antecedent o li)ationE and .ayment at t-ose deferred dates# y t-e for earance and indul)ence of t-e creditor# of t-e residue of t-e .rinci.al de t and costs# could not 0in my o.inion4 e a consideration for t-e relin>uis-ment of interest and disc-ar)e of t-e ,ud)ment# unless t-e .ayment of t-e 7188# at t-e time of si)nin) t-e a)reement# +as suc- a consideration! *s to accord and satisfaction# in .oint of fact t-ere could e no com.lete satisfaction# so lon) as any future instalment remained .aya leE and B do not see -o+ any mere .ayments on account could o.erate in la+ as a satisfaction ad interim# conditionally u.on ot-er .ayments ein) after+ards duly made# unless t-ere +as a consideration sufficient to su..ort t-e a)reement +-ile still une=ecuted! Nor +as anyt-in)# in fact# done y t-e res.ondent in t-is case# on t-e recei.t of t-e last .ayment# +-ic- could e tantamount to an ac>uittance# if t-e a)reement did not .reviously ind -er! T-e >uestion# t-erefore# is na%edly raised y t-is a..eal# +-et-er your Lords-i.s are no+ .re.ared# not only to overrule# as contrary to la+# t-e doctrine stated y Sir Ed+ard "o%e to *612 -ave een laid do+n y all t-e ,ud)es of t-e "ommon Pleas in Pinnel/s "ase 18 in 1685# and re.eated in -is note to Littleton# sect! 944 11 # ut to treat a .ros.ective a)reement# not under seal# for satisfaction of a de t# y a series of .ayments on account to a total amount less t-an t-e +-ole de t# as indin) in la+# .rovided t-ose .ayments are re)ularly madeE t-e case not ein) one of a com.osition +it- a common de tor# a)reed to# inter se# y several creditors! B .refer so to state t-e >uestion instead of treatin) it 0as it +as .ut at t-e $ar4 as de.endin) on t-e aut-ority of t-e case of "um er v! &ane 15 # decided in 1318! Bt may +ell e t-at distinctions# +-ic- in later cases -ave een -eld sufficient to e=clude t-e a..lication of t-at doctrine# e=isted and +ere im.ro.erly disre)arded in "um er v! &ane 19 E and yet t-at t-e doctrine itself may e la+# ri)-tly reco)nised in "um er v! &ane 14 # and not really contradicted y any later aut-orities! *nd t-is a..ears to me to e t-e true state of t-e case! T-e doctrine itself# as laid do+n y Sir Ed+ard "o%e# may -ave een criticised# as >uestiona le in .rinci.le# y some .ersons +-ose o.inions are entitled to res.ect# ut it -as never een ,udicially overruledE on t-e contrary B t-in% it -as al+ays# since t-e si=teent- century# een acce.ted as la+! Bf so# B cannot t-in% t-at your Lords-i.s +ould do ri)-t# if you +ere no+ to reverse# as erroneous# a ,ud)ment of t-e "ourt of *..eal# .roceedin) u.on a doctrine +-ic- -as een acce.ted as .art of t-e la+ of En)land for 588 years! T-e doctrine# as stated in Pinnel/s "ase 11 # is <t-at .ayment of a lesser sum on t-e day@ 0it +ould of course e t-e same after t-e day4# <in satisfaction of a )reater# cannot e any satisfaction for t-e +-ole# ecause it a..ears

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to t-e Jud)es# t-at y no .ossi ility a lesser sum can e a satisfaction to t-e .laintiff for a )reater sum!@ *s stated in "o%e Littleton# 515 0 4# it is# <+-ere t-e condition is for .ayment of 758# t-e o li)or or feoffor cannot at t-e time a..ointed .ay a lesser sum in satisfaction of t-e +-ole# ecause it is a..arent t-at a lesser sum of money cannot e a satisfaction of a )reaterE@ addin) 0+-at is eyond controversy4# t-at an ac>uittance under seal# in full *613 satisfaction of t-e +-ole# +ould 0under li%e circumstances4 e valid and indin)! T-e distinction et+een t-e effect of a deed under seal# and t-at of an a)reement y .arol# or y +ritin) no under seal# may seem ar itrary# ut it is esta lis-ed in our la+E nor is it really unreasona le or .ractically inconvenient t-at t-e la+ s-ould re>uire .articular solemnities to )ive to a )ratuitous contract t-e force of a indin) o li)ation! Bf t-e >uestion e 0as# in t-e actual state of t-e la+# B t-in% it is4# +-et-er consideration is# or is not# )iven in a case of t-is %ind# y t-e de tor +-o .ays do+n .art of t-e de t .resently due from -im# for a .romise y t-e creditor to relin>uis-# after certain furt-er .ayments on account# t-e residue of t-e de t# B cannot say t-at B t-in% consideration is )iven# in t-e sense in +-ic- B -ave al+ays understood t-at +ord as used in our la+! Bt mi)-t e 0and indeed B t-in% it +ould e4 an im.rovement in our la+# if a release or ac>uittance of t-e +-ole de t# on .ayment of any sum +-ic- t-e creditor mi)-t e content to receive y +ay of accord and satisfaction 0t-ou)- less t-an t-e +-ole4# +ere -eld to e# )enerally# indin)# t-ou)- not under sealE nor s-ould B e un+illin) to see e>ual force )iven to a .ros.ective a)reement# li%e t-e .resent# in +ritin) t-ou)- not under sealE ut B t-in% it im.ossi le# +it-out refinements +-ic- .ractically alter t-e sense of t-e +ord# to treat suc- a release or ac>uittance as su..orted y any ne+ consideration .roceedin) from t-e de tor! *ll t-e aut-orities su se>uent to "um er v! &ane 16 # +-ic- +ere relied u.on y t-e a..ellant at your Lords-i.s/ $ar 0suc- as Si ree v! Tri.. 13 # "urle+is v! "lar% 18 # and Hoddard v! 6/$rien 1? 4 -ave .roceeded u.on t-e distinction# t-at# y )ivin) ne)otia le .a.er or ot-er+ise# t-ere -ad een some ne+ consideration for a ne+ a)reement# distinct from mere money .ayments in or to+ards disc-ar)e of t-e ori)inal lia ility! B t-in% it unnecessary to )o t-rou)- t-ose cases# or to e=amine t-e .articular )rounds on +-ic- eac- of t-em +as decided! T-ere are no sucfacts in t-e case no+ efore your Lords-i.s! &-at is called <any enefit# or even any le)al .ossi ility of enefit#@ in Mr! Smit-/s notes to "um er v! &ane 68 # is not *614 0as B conceive4 t-at sort of enefit +-ic- a creditor may derive from )ettin) .ayment of .art of t-e money due to -im from a de tor +-o mi)-t ot-er+ise %ee. -im at arm/s len)t-# or .ossi ly ecome insolvent# ut is some inde.endent enefit# actual or contin)ent# of a %ind +-ic- mi)-t in la+ e a )ood and valua le consideration far any ot-er sort of a)reement not under seal! My conclusion is# t-at t-e order a..ealed from s-ould e affirmed# and t-e a..eal dismissed# +it- costs# and B so move your Lords-i.s! L62: $L*"D$K2N:; My Lords# t-e first >uestion raised is as to +-at +as t-e true construction of t-e memorandum of a)reement made on t-e 51st of :ecem er 1836! &-at +as it t-at t-e .arties y t-at +ritin) a)reed toC T-e a..ellants contend t-at t-ey meant t-at on .ayment do+n of 7188# and .ayment +it-in a mont- after t-e 1st day of July and t-e 1st day of January in eac- ensuin) year of 7118# until t-e sum of 758?8 1?s! +as .aid# t-e ,ud)ment for t-at sum and interest s-ould e satisfied# for an a)reement to ta%e no .roceedin)s on t-e ,ud)ment is e>uivalent to treatin) it as satisfied! T-is construction of t-e memorandum re>uires t-at after t-e tent.ayment of 7118 t-ere s-ould e a furt-er .ayment of 7?8 1?s! made +it-in t-e ne=t si= mont-s! T-is is t-e construction +-ic- all t-ree "ourts elo+ -ave .ut u.on t-e memorandum! T-e res.ondent contends t-at t-e true construction of t-e memorandum +as t-at time +as to e )iven on t-ose conditions for five years# t-e ,ud)ment ein) on default of any one .ayment enforcea le for +-atever +as still un.aid# +it- interest from t-e date t-e ,ud)ment +as si)ned# ut t-at t-e interest +as not intended to e for)iven at all! Bf t-is is t-e true construction of t-e a)reement t-e ,ud)ment a..ealed a)ainst is ri)-t and s-ould e affirmed# +-et-er t-e reason on +-ic- t-e "ourt of *..eal founded its ,ud)ment +as ri)-t or not! B am# -o+ever# of o.inion t-at t-e "ourts elo+# +-o on t-is .oint +ere unanimous# .ut t-e true construction on t-e memorandum! B do not t-in% t-e >uestion free from difficulty! *615 Bt +ould -ave een easy to -ave e=.ressed# in unmista%ea le +ords# t-at on .ayment do+n of 7188# and .unctual .ayment at t-e rate of 7988 a year till 758?8 1?s! +as .aid# t-e ,ud)ment s-ould not e enforced eit-er for .rinci.al or interestE or lan)ua)e mi)-t -ave een used +-ic- s-ould e>ually clearly -ave e=.ressed t-at# t-ou)- time +as to e )iven# interest +as to e .aid in addition to t-e instalments! T-e +ords actually used are suc- t-at B t-in% it is >uite .ossi le t-at t-e t+o .arties .ut a different construction on t-e +ords at t-e timeE ut B t-in% t-e +ords <till t-e said sum of 758?8 1?s! s-all -ave een fully .aid and satisfied@ cannot e construed as meanin) <till t-at sum# +it- interest from t-e day ,ud)ment +as si)ned# s-all -ave een fully .aid and satisfied#@ nor can t-e .romise <not to ta%e any .roceedin)s +-atever on t-e ,ud)ment@ e cut do+n to meanin) any .roceedin)s e=ce.t t-ose necessary to enforce .ayment of interest! B t-in%# t-erefore# t-at it is necessary to consider t-e )round on +-ic- t-e "ourt of *..eal did ase t-eir

Page1

,ud)ment# and to say +-et-er t-e a)reement can e enforced! B construe it as acce.tin) and ta%in) 7188 in satisfaction of t-e +-ole 758?8 1?s!# su ,ect to t-e condition t-at unless t-e alance of t-e .rinci.al de t +as .aid y t-e instalments# t-e +-ole mi)-t e enforced +it- interest! Bf# instead of 7188 in money# it -ad een a -orse valued at 7188# or a .romissory note for 7188# t-e aut-orities are t-at it +ould -ave een a )ood satisfaction# ut it is said to e ot-er+ise as it +as money! T-is is a >uestion# B t-in%# of difficulty! Bn "o%e# Littleton 515 # Lord "o%e says: <+-ere t-e condition is for .ayment of 758# t-e o li)or or feoffor cannot at t-e time a..ointed .ay a lesser sum in satisfaction of t-e +-ole# ecause it is apparent t-at a lesser sum of money cannot e a satisfaction of a )reater! L Bf t-e o li)or or feoffor .ay a lesser sum eit-er efore t-e day or at anot-er .lace t-an is limited y t-e condition# and t-e o li)ee or feoffee receivet- it# t-is is a )ood satisfaction!@ 'or t-is -e cites Pinnel/s "ase 61 ! T-at +as an action on a ond for 716# conditioned for t-e .ayment of 78 18s! on t-e 11t- of Novem er 1688! Plea t-at *616 defendant# at .laintiff/s re>uest# efore t-e said day# to +it# on t-e 1st of 6cto er# .aid to t-e .laintiff 71 5s! 5d!# +-ic- t-e .laintiff acce.ted in full satisfaction of t-e 78 18s! T-e .laintiff -ad ,ud)ment for t-e insufficient .leadin)! $ut t-ou)- t-is +as so# Lord "o%e re.orts t-at it +as resolved y t-e +-ole "ourt of "ommon Pleas <t-at .ayment of a lesser sum on t-e day in satisfaction of a )reater cannot e any satisfaction for t-e +-ole# ecause it a..ears to t-e ,ud)es t-at y no .ossi ility a lesser sum can e a satisfaction to t-e .laintiff for a )reater sum: ut t-e )ift of a -orse# -a+%# or ro e# Mc!# in satisfaction is )ood# for it s-all e intended t-at a -orse# -a+%# or ro e# Mc!# mi)-t e more eneficial to t-e .laintiff t-an t-e money# in res.ect of some circumstance# or ot-er+ise t-e .laintiff +ould not -ave acce.ted of it in satisfaction! $ut +-en t-e +-ole sum is due# y no intendment t-e acce.tance of .arcel can e a satisfaction to t-e .laintiffE ut in t-e case at ar it +as resolved t-at t-e .ayment and acce.tance of .arcel efore t-e day in satisfaction of t-e +-ole +ould e a )ood satisfaction in re)ard of circumstance of timeE for .eradventure .arcel of it efore t-e day +ould e more eneficial to -im t-an t-e +-ole at t-e day# and t-e value of t-e satisfaction is not materialE so if B am ound in 758 to .ay you 718 at &estminster# and you re>uest me to .ay you 71 at t-e day at Nor%# and you +ill acce.t it in full satisfaction for t-e +-ole 718# it is a )ood satisfaction for t-e +-ole# for t-e e=.enses to .ay it at Nor% is sufficient satisfaction!@ T-ere are t+o t-in)s -ere resolved! 'irst# t-at +-ere a matter .aid and acce.ted in satisfaction of a de t certain mi)-t y any .ossi ility e more eneficial to t-e creditor t-an -is de t# t-e "ourt +ill not in>uire into t-e ade>uacy of t-e consideration! Bf t-e creditor# +it-out any fraud# acce.ted it in satisfaction +-en it +as not a sufficient satisfaction it +as -is o+n fault! *nd t-at .ayment efore t-e day mi)-t e more eneficial# and conse>uently t-at t-e .lea +as in su stance )ood# and t-is must -ave een decided in t-e case! T-ere is a second .oint stated to -ave een resolved# vi(!: <T-at .ayment of a lesser sum on t-e day cannot e any satisfaction of t-e +-ole# ecause it a..ears to t-e ,ud)es t-at y no .ossi ility a lesser sum can e a satisfaction to t-e .laintiff for a *617 )reater sum!@ T-is +as certainly not necessary for t-e decision of t-e caseE ut t-ou)- t-e resolution of t-e "ourt of "ommon Pleas +as only a dictum# it seems to me clear t-at Lord "o%e deli erately ado.ted t-e dictum# and t-e )reat +ei)-t of -is aut-ority ma%es it necessary to e cautious efore sayin) t-at +-at -e deli erately ado.ted as la+ +as a mista%e# and t-ou)- B cannot find t-at in any su se>uent case t-is dictum -as een made t-e )round of t-e decision# e=ce.t in 'itc- v! Sutton 65 # as to +-icB s-all ma%e some remar%s later# and in :o+n v! Hatc-er 69 # as to +-ic- Par%e# $! in "oo.er v! Par%er 64 # said# <&-enever t-e >uestion may arise as to +-et-er :o+n v! Hatc-er 61 is )ood la+# B s-ould -ave a )reat deal to say a)ainst it#@ yet t-ere certainly are cases in +-ic- )reat ,ud)es -ave treated t-e dictum in Pinnel/s "ase 66 as )ood la+! 'or instance# in Si ree v! Tri.. 63 # Par%e# $! says# <Bt is clear if t-e claim e a li>uidated and ascertained sum# .ayment of .art cannot e satisfaction of t-e +-ole# alt-ou)- it may# under certain circumstances# e evidence of a )ift of t-e remainder!@ *nd *lderson# $! in t-e same case says# <Bt is undou tedly true t-at .ayment of a .ortion of a li>uidated demand# in t-e same manner as t-e +-ole li>uidated demand +-ic- ou)-t to e .aid# is .ayment only in .art# ecause it is not one ar)ain# ut t+oE vi(! .ayment of .art# and an a)reement +it-out consideration to )ive u. t-e residue! T-e "ourts mi)-t very +ell -ave -eld t-e contrary# and -ave left t-e matter to t-e a)reement of t-e .arties# ut undou tedly t-e la+ is so settled!@ *fter suc- stron) e=.ressions of o.inion# B dou t muc- +-et-er any ,ud)e sittin) in a "ourt of t-e first instance +ould e ,ustified in treatin) t-e >uestion as o.en! $ut as t-is -als very seldom# if at all# een t-e )round of t-e decision even in a "ourt of t-e first instance# and certainly never een t-e )round of a decision in t-e "ourt of E=c-e>uer "-am er# still less in t-is House# B did t-in% it o.en in your Lords-i.s/ House to reconsider t-is >uestion! *nd# not+it-standin) t-e very -i)- aut-ority of Lord *618 "o%e# B t-in% it is not t-e fact t-at to acce.t .rom.t .ayment of a .art only of a li>uidated demand# can never e more eneficial t-an to insist on .ayment of t-e +-ole! *nd if it e not t-e fact# it cannot e a..arent to t-e ,ud)es! B +ill first e=amine t-e aut-orities! Bf a defendant .leaded t-e )eneral issue# t-e .laintiff could ,oin issue at once# and if t-e case +as not defended )et -is verdict at t-e ne=t assi(es! $ut y .leadin) a s.ecial .lea# t-e .laintiff

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+as o li)ed to re.ly# and t-e defendant often caused t-e .laintiff# merely y t-e delay occasioned y re.lyin)# to se an assi(e! Bf t-e re.lication +as one to +-ic- -e could demur -e made t-is sure! Stran)ely enou)- it seems lon) to -ave een t-ou)-t t-at if t-e defendant %e.t +it-in reasona le ounds neit-er -e nor -is la+yers +ere to lame in )ettin) time in t-is +ay y a s-am .lea;t-at a c-attel +as )iven and acce.ted in satisfaction of t-e de t! T-e reco)nised forms +ere )ivin) and acce.tin) in satisfaction a eaver -at: Noun) v! 2udd 68 # or a .i.e of +ine 6? ! *ll t-is is no+ anti>uated! $ut +-ilst it continued to e t-e .ractice# t-e .leas founded on t-e first .art of t-e resolution in Pinnel/s "ase 38 +ere very common# and t-at la+ +as .erfectly trite! No one far a moment su..osed t-at a eaver -at +as really )iven and acce.tedE ut every one %ne+ t-at t-e la+ +as t-at if it +as really )iven and acce.ted it +as a )ood satisfaction! $ut s.ecial .leas founded on t-e ot-er resolution in Pinnel/s "ase 31 # on +-at B -ave ventured to call t-e dictum# +ere certainly not common! B dou t if a real defence of t-is sort +as ever s.ecially .leaded! &-en t-ere really +as a >uestion as to +-et-er a de t +as satisfied y a .ayment of a smaller sum t-e defendant .leaded t-e )eneral issue# and if it +as .roved to t-e satisfaction of t-e ,ury t-at a smaller sum -ad een .aid and acce.ted in satisfaction of a )reater# if o ,ection +as raised t-e ,ury mi)-t .er-a.s# as su))ested y Holroyd J! in T-omas v! Heat-orn 35 # find t-at t-e circumstances +ere suc- t-at t-e le)al effect +as to e as if t-e +-ole +as .aid do+n and a .ortion t-ro+n ac% as a )od/sF.enny! T-is# -o+ever# seems to me to e an unsatisfactory and *619 artificial +ay of avoidin) t-e effect of t-e dictum# and it could not e a..lied to suc- an a)reement as t-at no+ efore t-is House! 'or +-atever reason it +as# B %no+ of no case in +-ic- t-e >uestion +as raised +-et-er a .ayment of a lesser sum could e satisfaction of a li>uidated demand from Pinnel/s "ase 39 do+n to "um er v! &ane # 1 Heo! 1 34 # a .eriod of 111 years! Bn *dams v! Ta.lin) 31 +-ere t-e .lea +as ad for many ot-er reasons# it is re.orted to -ave een said y t-e "ourt t-at: <Bn covenant +-ere t-e dama)es are uncertain# and to e recovered# as in t-is case# a lesser t-in) may e done in satisfaction# and t-ere Oaccord and satisfactionP is a )ood .lea!@ No dou t t-is +as one of t-e cases +-ic- Par%e# $! +ould -ave cited in su..ort of -is o.inion t-at :o+n v! Hatc-er 36 +as not )ood la+! T-e "ourt are said to -ave )one on to reco)nise t-e dictum in Pinnel/s "ase 33 # or at least not to dissent from it# ut it +as not t-e )round of t-eir decision! Bn every ot-er re.orted case +-ic- B -ave seen t-e >uestion arose on a demurrer to a re.lication to +-at +as o viously a s-am or dilatory .lea! Some dou t -as een made as to +-at t-e .leadin)s in "um er v! &ane 38 really +ere! B -ave o tained t-e record 3? ! T-e .lea is t-at after t-e .romises aforesaid# and efore t-e issuin) of t-e +rit# it +as a)reed et+een t-e said Heor)e and Ed+ard "um er t-at -e# t-e said Heor)e# <daret eidem Ed+ardo "um er >uandm notam in scri.t vocatam Oa .romissory noteP manu .ro.ria i.sius Heor)ii su scri.t .r! solucon eidem Ed+ardo "um er vel ordiQi >uin>ue li rarum#@ fourteen days after date# in full satisfaction and e=oneration of t-e .remises and .romises# +-ic- said note in +ritin) t-e said Heor)e t-en )ave to t-e said Ed+ard "um er# and t-e said Ed+ard "um er t-en and t-ere received from t-e said Heor)e t-e said note in full satisfaction and disc-ar)e of t-e .remises and .romises! T-e re.lication is t-at# <t-e said Heor)e did not )ive to -im Ed+ard any note in +ritin) called a .romissory note +it- t-e *620 -and of -im Heor)e su scri ed for t-e .ayment to -im Ed+ard or -is order of 71# fourteen days after date in full satisfaction and disc-ar)e of t-e .remises and .romises!@ To t-is t-ere is a demurrer and ,ud)ment in t-e "ommon Pleas for t-e .laintiff <t-at t-e re.lication +as )ood in la+!@ T-e re.orter# oddly enou)-# says t-ere +as an immaterial re.lication! T-e effect of t-e re.lication is to .ut in issue t-e su stance of t-e defence# namely# t-e )ivin) in satisfactionE Noun) v! 2udd 88 # and certainly t-at +as not immaterial! $ut for some reason# B do not sto. to in>uire +-at# Pratt "!J! .refers to ase t-e ,ud)ment affirmin) t-at of t-e "ommon Pleas on t-e su..osed adness of t-e .lea rat-er t-an on t-e sufficiency of t-e re.lication! Bt is im.ossi le to dou t t-at t-e note# +-ic- it is averred in t-e .lea +as )iven as satisfaction# +as a ne)otia le note! *nd t-erefore t-is case is in direct conflict +it- Si ree v! Tri.. 81 ! T+o cases re>uire to e carefully considered! T-e first is Heat-cote v! "roo%s-an%s 85 ! T-e .lea t-ere .leaded +ould# B t-in%# no+ e -eld .erfectly )ood# see Norman v! T-om.son 89 E ut $uller J! seems to -ave t-ou)-t ot-er+ise! He says# <t-irdly it +as said t-at all t-e creditors +ere ound y t-is a)reement to for ear# ut t-at is not stated y t-e .lea! Bt is only alle)ed t-at t-ey a)reed to ta%e a certain .ro.ortion# ut t-at is a nudum .actum# unless t-ey -ad after+ards acce.ted it! Bn t-e case in +-ic- "um er v! &ane 84 +as denied to e la+# Hardcastle v! Ho+ard 056 Heo! 9# $!2!4# t-e .arty actually acce.ted! $ut as t-e .laintiff in t-e .resent case refused to ta%e less t-an t-e +-ole demand# t-e .lea is clearly ad!@ T-at decision )oes entirely on t-e )round t-at accord +it-out satisfaction is not a .lea! B do not t-in% it can e fairly said t-at $uller J! meant y sayin) <t-at is a nudum .actum# unless t-ey -ad after+ards acce.ted it#@ to e=.ress an o.inion t-at if t-e dividend -ad een acce.ted it +ould -ave een a )ood satisfaction! $ut -e certainly e=.resses no o.inion t-e ot-er +ay! Bn 'itc- v! Sutton 81 not only did t-e .laintiff not acce.t *621 t-e .ayment of t-e dividend in satisfaction# ut

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refused to acce.t it at all# unless t-e defendant .romised to .ay -im t-e alance +-en of a ility# and t-e defendant assented and made t-e .romise re>uired# so t-at ut for t-e fact t-at ot-er creditors +ere .arties to t-e com.osition t-ere could -ave een no defence! T-ere +as no .oint of .leadin) in t-at case# t-e +-ole ein) o.en under t-e )eneral issue! *nd in Steinman v! Ma)nus 86 it +as .retty +ell admitted y Lord Ellen orou)t-at t-e decision in 'itc- v! Sutton 83 +ould -ave een t-e ot-er +ay# if t-ey -ad understood t-e evidence as t-e re.orter did! $ut t-ou)- t-is misa..re-ension of t-e ,ud)es as to t-e facts# and t-e a sence of any acce.tance of t-e dividend# )reatly +ea%en t-e +ei)-t of 'itc- v! Sutton 88 # still it remains t-at Lord Ellen orou)-# a very )reat ,ud)e indeed# did# -o+ever -asty or unnecessary it may -ave een to e=.ress suc- an o.inion# say# <Bt is im.ossi le to contend t-at acce.tance of 713 18s! is an e=tin)uis-ment of a de t of 718! T-ere must e some consideration for t-e relin>uis-ment of t-e residueE somet-in) collateral# to s-e+ a .ossi ility of enefit to t-e .arty relin>uis-in) -is furt-er claim# ot-er+ise t-e a)reement is nudum .actum! $ut t-e mere .romise to .ay t-e rest +-en of a ility .ut t-e .laintiff in no etter condition t-an -e +as efore! Bt +as e=.ressly determined in "um er v! &ane 8? t-at acce.tance of a security for a lesser sum cannot e .leaded in satisfaction of a similar security for a )reater! *nd t-ou)- t-at case +as said y me in ar)ument in Heat-cote v! "roo%s-an%s ?8 to -ave een denied to e la+# and in confirmation of t-at $uller J! after+ards referred to a case 0stated to e t-at of Hardcastle v! Ho+ard 0H! 56 Heo! 944# yet B cannot find any case of t-at sort# and none -as een no+ referred toE on t-e contrary t-e decision in "um er v! &ane ?1 is directly su..orted y t-e aut-ority of Pinnel/s "ase ?5 # +-ic- never a..ears to -ave een >uestioned!@ B must o serve t-at# +-et-er "um er v! &ane ?9 +as# or +as not denied to e la+ in Hardcastle v! Ho+ard # it certainly +as denied to e la+ in Si ree v! Tri.. ?4 # and t-at# t-ou)- it is *622 >uite true t-at Pinnel/s "ase ?1 # as far as re)ards t-e .oints actually raised in t-e case# -as not only never een >uestioned# ut is often assented to# B am not a+are t-at in any case efore 'itc- v! Sutton ?6 # unless it e "um er v! &ane ?3 # -as t-at .art of it +-ic- B venture to call t-e dictum ever een acted u.onE and as B -ave .ointed out# -ad it not een for t-e com.osition +it- ot-er creditors# t-ere could -ave een no defence in 'itc- v! Sutton ?8 # +-et-er t-e dictum in Pinnel/s "ase ?? +as ri)-t or +ron)! Still t-is is an aut-ority# and B -ave no dou t t-at it +as on t-e )round of t-is aut-ority and t-e ad-esion of $ayley J! to it in T-omas v! Heat-orn 188 # t-at $arons Par%e and *lderson e=.ressed t-emselves as t-ey did in t-e .assa)es B -ave cited from Si ree v! Tri.. 181 ! *nd B t-in% t-at t-eir e=.ressions ,ustify Mr! Jo-n &illiam Smit- in layin) it do+n as -e does in -is note to "um er v! &ane 185 # in t-e second edition of -is <Leadin) "ases#@ t-at <a li>uidated and undis.uted money demand# of +-ic- t-e day of .ayment is .assed 0not founded u.on a ill of e=c-an)e or .romissory note4# cannot even +it- t-e consent of t-e creditor e disc-ar)ed y mere .ayment y t-e de tor of a smaller amount in money in t-e same manner as -e +as ound to .ay t-e +-ole!@ B am inclined to t-in% t-at t-is +as settled in a "ourt of t-e first instance! B t-in% -o+ever t-at it +as ori)inally a mista%e! &-at .rinci.ally +ei)-s +it- me in t-in%in) t-at Lord "o%e made a mista%e of fact is my conviction t-at all men of usiness# +-et-er merc-ants or tradesmen# do every day reco)nise and act on t-e )round t-at .rom.t .ayment of a .art of t-eir demand may e more eneficial to t-em t-an it +ould e to insist on t-eir ri)-ts and enforce .ayment of t-e +-ole! Even +-ere t-e de tor is .erfectly solvent# and sure to .ay at last# t-is often is so! &-ere t-e credit of t-e de tor is dou tful it must e more so! B -ad .ersuaded myself t-at t-ere +as no suclon)Fcontinued action on t-is dictum as to render it im.ro.er in t-is House to reconsider t-e >uestion! B -ad +ritten my reasons for *623 so t-in%in)E ut as t-ey +ere not satisfactory to t-e ot-er no le and learned Lords +-o -eard t-e case# B do not no+ re.eat t-em nor .ersist in t-em! B assent to t-e ,ud)ment .ro.osed# t-ou)- it is not t-at +-ic- B -ad ori)inally t-ou)-t .ro.er! L62: &*TS6N:; My Lords# B am of o.inion t-at t-e ,ud)ment of t-e "ourt of *..eal ou)-t to e affirmed! B re)ret t-at B -ave een una le to ado.t t-at construction of t-e memorandum of a)reement +-ic- -as commended itself to your Lords-i.s +-o -ave already s.o%en as +ell as to t-e ,ud)es of t-e "ourt of *..eal! Bt a..ears to me t-at t-e res.ondent did not intend to .ass# and did not .ass# from -er le)al claim for interest on t-e ,ud)ment de t due to -er y t-e a..ellant! S-e underta%es not to ta%e .roceedin)s on t-e ,ud)ment .rovided t-e sti.ulated termly instalments are re)ularly .aid# <until t-e +-ole of t-e said sum of 758?8 1?s! s-all -ave een fully .aid and satisfied!@ $ut t-ese +ords# t-e <said sum#@ ou)-t# in my o.inion# to e construed as referrin) to t-e sum of 758?8 1?s! .reviously descri ed as ein) contained in a ,ud)ment of Her Ma,esty/s Hi)"ourt of Justice# and t-erefore earin) interest e= le)e! T-e +-ole conte=t of t-e memorandum a..ears to me to e consistent +it- t-is vie+# and to .oint stron)ly to t-e inference t-at t-ere +as no a)reement# or even .ro.osal# t-at t-e res.ondent s-ould ma%e any a atement of -er le)al claims# or do more t-an )ive -er de tor time on t-e conditions e=.ressed# <to .ay suc- ,ud)ment!@ B must assume# -o+ever# t-at B -ave +ron)ly construed t-e memorandum of a)reement# and t-at its lan)ua)e

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im.orts t-at t-e res.ondent +as to a stain from ta%in) .roceedin)s u.on t-e ,ud)ment# if and +-en instalments to t-e amount of 758?8 1?s! -ad een duly and re)ularly .aid! K.on t-at assum.tion# B am still of o.inion t-at t-e res.ondent ou)-t to .revail# on t-e sim.le )round t-at# in t-at vie+ of t-e memorandum -er a)reement to a ate .art of -er claim +as nudum .actum# for +-ic- t-e a..ellant )ave no le)al consideration! B do not t-in% it necessary to consider +-et-er it +ould still e *624 o.en to t-is House# if so advised# to overrule t-e doctrine of "um er v! &ane 189 and Pinnel/s "ase 184 # ecause B am not .re.ared to distur t-at doctrine! Nor do B t-in% it necessary to occu.y t-e time of t-e House +it- a detailed e=.lanation of t-e considerations +-ic- -ave led me to t-at result# seein) t-at B concur in t-e ,ud)ment of t-e Lord "-ancellor# and also in t-e o.inion a out to e delivered y my no le and learned friend o..osite 0Lord 'it(Herald4# +-ic- B -ave -ad t-e advanta)e of readin)! L62: 'BTRHE2*L::; My Lords# t-e first >uestion is as to t-e true construction of t-e memorandum of a)reement of t-e 51st of :ecem er 1836# and B e=.ress my o.inion on it +it- t-e )reatest diffidence! My e=cuse for e=.ressin) any o.inion u.on it is t-at B feel rat-er stron)ly on t-e .oint! T-e memorandum is# it may e o served# unilateral# for :r! 'oa%es y it assumes no o li)ation! T-e first recital is t-at Mrs! $eer -ad o tained a ,ud)ment a)ainst :r! 'oa%es for a sum of 758?8 1?s! T-e ,ud)ment +ould not .er se# at common la+# entitle t-e .laintiff to interest# ut t-e statute 1 M 5 Sict! c! 118 s! 13 .rovides <t-at every ,ud)ment de t s-all carry interest at 4 .er cent! from t-e time of enterin) u. until t-e same s-all e satisfied# and suc- interest may e levied under a +rit of e=ecution on suc- ,ud)ment!@ T-is ri)-t to interest is different from interest arisin) on contract# or +-ic- a ,ury may )ive as dama)es or may +it--old! Bt is a clear statutory ri)-t# arisin) immediately on enterin) u. t-e ,ud)ment# and continuin) until t-e ,ud)ment de t is fully .aid! T-e .osition of t-e .arties at t-e date of t-e a)reement t-en +as t-at :r! 'oa%es o+ed Mrs! $eer t-e .rinci.al sum of 758?8 1?s!# recovered y a ,ud)ment +-ic- carried interest at 4 .er cent!# arisin) de die in diem as a statutory ri)-t# and t-en 0t-at is# at t-e time of t-e a)reement4 amountin) to 7119 16s! 5d! T-e a)reement t-en contains t-is recital: <*nd +-ereas t-e said J! &! 'oa%es -as re>uested t-e said Julia $eer te )ive -im time in +-ic- to .ay such !udgment # +-ic- s-e -as a)reed to do on t-e follo+in) conditions!@ He does not as% for any remission *625 of any .ortion of -is o li)ation# -e solicits only time for .ayment# and s-e a)rees to )ive -im t-at time and no more! Bt seems to me clear and free from dou t t-at <suc- ,ud)ment@ in t-is recital +ould# if t-ere +as no more to )uide us# mean t-e ,ud)ment de t +it- its statuta le interest at 4 .er cent! T-e lan)ua)e of t-e recital and of t-e +-ole a)reement seems to e t-at of Mr! Smit-# t-e defendant/s solicitor# as +e find in Mac%ret-/s evidence t-is statement: <T-e a)reement +as .re.ared y Smit- and sent to me# and B a..roved of it on e-alf of Mrs! $eer!@ 2eturnin) to t-e lan)ua)e of t-e a)reement# it is remar%a le t-at :r! 'oa%es underta%es y it no o li)ation +-ateverE -e does not ind -imself to .ay any instalment to -er or to -er <nomineeE@ and it +as not necessary t-at -e s-ould# for B can entertain no dou t t-at if +-at is called t-e <condition@ for .ayment of t-e instalments -ad not een fulfilled# t-en Mrs! $eer could -ave enforced t-e +-ole residue of -er demand for .rinci.al and t-e interest t-at accrued# y e=ecution on t-e ,ud)ment! :r! 'oa%es enters into no o li)ation to .ay to -er <nominee#@ and t-is seems to dis.lace in fact t-e foundation of t-e ,ud)ment of t-e :ivisional "ourt# +-ere &illiams J! is re.orted to -ave said 181 : <T-e doctrine is t-at an a)reement to .ay a less sum in satisfaction of a de t is +it-out consideration! T-e En)lis- la+ for ids suc- an a)reement! T-at is t-e la+ in its na%ed sim.licity! $ut B t-in% a very little de.arture from t-e mere a)reement to .ay a less sum +ill ma%e t-e a)reement )ood! Bf t-e creditor says# ONou o+e me a lar)e sum of money;B am +illin) to accede to your re>uest for time# ut you must enter into an a)reement in +ritin)# at your e=.ense 0as it +ould e4 and you s-all .ay t-e money to me or to any .erson B may name at my election#P t-at# B t-in%# is enou)- to ma%e t-is a)reement not a nudum .actum!@ 0T-ere is no suc- t-in) in t-e a)reement -ere!4 *nd Mat-e+ J! adds# <Bt is noticea le t-at t-e a)reement is framed so t-at it casts an o li)ation +-ic- +ould not ot-er+ise -ave e=isted! T-e a)reement to .ay t-e creditor/s nominee renders it a document availa le as a security!@ Bt +ould seem# to me at least# t-at t-e terms of t-e a)reement *626 -ad never een .ro.erly conveyed to t-e minds of t-e ,ud)esE for in fact :r! 'oa%es assumed no )reater o li)ation t-an t-e la+ im.osed on -im in res.ect of t-e ,ud)ment! T-e e=.ressed consideration is t-e .ayment to Mrs! $eer <of t-e sum of 7188 in .art satisfaction of the said !udgment debt of 758?8 1?s!#@ and a)ain B s-ould re.eat -ere t-at t-e last +ords +ould mean t-e de t and t-e ri)-t to interest +-ic- it carried# if t-ere is not-in) su se>uent to im.ose a different meanin)! T-e term <satisfaction@ is s.ecially a..lica le to a ,ud)ment! Nou could not in former times .lead .ayment sim.ly to a

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scire facias on a ,ud)ment! T-e .lea s-ould s-e+ satisfaction! T-e ,ud)ment +ould not e satisfied on .ayment of t-e 758?8 1?s! ut only y .ayment of t-at sum and t-e interest! T-e a)reement t-en .rovides as a condition for t-e .ayment of t-e instalments of 7118# <until t-e +-ole of t-e said sum of 758?8 1?s! s-all -ave een fully .aid and satisfied !@ T-e +-ole difficulty arises on t-is .assa)e! Bf in .lace of usin) t-e +ord <sum@ it -ad used <,ud)ment@ or <,ud)ment de t#@ in my o.inion t-ere could -ave een ut one construction# vi(!# t-at <,ud)ment@ or <,ud)ment de t@ meant t-e .rinci.al sum of 758?8 1?s! +it- <interest at 4 .er cent!@ No+# -avin) re)ard to +-at t-e .arties +ere at# +-y s-ould +e not read <t-e said sum of 758?8 1?s!@ y t-e li)-t of t-e antecedent .arts of t-e same a)reement as meanin) <t-e said ,ud)ment for 758?8 1?s!#@ and t-us do full and com.lete ,ustice# and not de.rive Mrs! $eer of a out 7918 as ,ustly due to -er as t-e 758?8 1?s!# and +-ic-# it is to me manifest# s-e never intended and +as never as%ed to relin>uis-C T-ere is a s.ecial recital indicatin) +-at t-e .arties intended# vi(!# <time on certain conditions@ ut +it-out a +ord as to relin>uis-in) any .art of t-e .laintiff/s demand# and if t-e su se>uent +ords are more )eneral# +e s-ould limit and >ualify t-em y t-e s.ecial lan)ua)e of t-e recital! :r! 'oa%es did not as% for any remission# -e as%ed for time and for time alone# and +e ou)-t to assume t-at +-en -is solicitor .re.ared and furnis-ed t-e memorandum of a)reement -e did not intend y its lan)ua)e t-at any .art of Mrs! $eer/s demand +as to e released! Mac%ret- says t-at in t-e course of t-e ne)ociation <interest +as never mentioned at all in reference to *627 t-at a)reement!@ S-e ado.ted t-e lan)ua)e of t-e memorandum# and it ecame -ers# ut +as it suc- as to lead :r! 'oa%es to understand t-at Mrs! $eer a)reed on .erformance of t-e condition to )ive u. -er claim to interestC B t-in% t-at +e ou)-t not to ado.t suc- a conclusion! T-ere are many aut-orities for t-e .ro.osition t-at you may limit t-e )eneral +ords of release y t-e antecedent recitals# so as to effectuate t-at alone +-ic- +as +it-in t-e intention of t-e .arties! B mi)-t refer to a num er of cases# for e=am.le T-or.e v! T-or.e 186 # +-ere it is said per Cur : <&-ere t-ere are )eneral +ords only in a release t-ey s-all e ta%en most stron)ly a)ainst t-e releasor# ut +-ere t-ere is a .articular recital and )eneral +ords follo+# t-ere t-e )eneral +ords s-all e >ualified y t-e s.ecial +ords!@ *..lyin) t-at rule to t-e .resent case# you may limit t-e )eneral +ords at t-e conclusion of t-e memorandum to t-e )ivin) of time alone# t-at is to say# if <,ud)ment de t of 758?8 1?s!@ means t-e sum of 758?8 1?s! and not-in) more# t-en t-at Mrs! $eer a)rees to )ive time for .ayment of t-e .rinci.al de t of 758?8 1?s! y t-e instalments and at t-e times indicated# and t-at .endin) t-at arran)ement s-e +ould not <ta%e any .roceedin)s +-atever on t-e said ,ud)ment!@ T-is +ould )ive effect to every +ord and leave t-e <interest@ untouc-ed# +-ic-# if t-e .rinci.al is to e .aid y instalments# could not +ell e ascertained until t-e time -ad een reac-ed for t-e .ayment of t-e last instalment! T-ere is not-in) in t-e memorandum# it s-ould e o served# to .revent :r! 'oa%es from comin) in at any time and disc-ar)in) t-e +-ole .rinci.al efore t-e instalments ecame .aya le! K.on t-e construction of t-e memorandum B am of o.inion t-at t-e decision of t-e "ourt of *..eal s-ould e affirmed! T-e second >uestion no+ .resents itself# ut +it- my vie+ on t-e first it is not actually necessary for me to e=.ress any o.inion on it# ut it seems more satisfactory t-at B s-ould do so! *ssumin) t-at B -ave fallen into error in inter.retin) t-e a)reement# and t-at it is to e read t-at if :r! 'oa%es s-ould .ay t-e actual sum of 758?8 1?s! y instalments accordin) to t-e condition *628 s-e +ould relin>uis- -er statuta le de t for interest and not issue e=ecution on t-e ,ud)ment to recover it# is suc- an a)reement nudum .actum# and t-erefore inca.a le of ein) enforcedC B -ave listened +it- muc- interest# and B may add# +it- no small instruction# to t-e ,ud)ment of my no le and learned friend Lord $lac% urn! He -as as usual )one to t-e very foundation# and B re)ret t-at B -ave een una le to assist -im in overturnin) t-e resolution of t-e "ourt of "ommon Pleas as re.orted y Lord "o%e in Pinnel/s "ase 183 # or in e=.un)in) from t-e oo%s t-e infinitesimal remains of "um er v! &ane 188 ! Bt seems to me dou tful +-et-er t-e >uestion arises +-ic- my no le and learned friend -as .resented# vi(!: +-et-er .ayment of a .art of a de t ascertained y ,ud)ment can e a satisfaction of t-e +-oleC Bn t-e case efore us t-e +-ole of t-e 758?8 1?s!# t-e .rinci.al of t-e ,ud)ment# -as een .aid to t-e last fart-in)! T-e inter.retation .ut y t-e ,ud)es of t-e "ourts elo+# and ado.ted y t-e Lord "-ancellor# and my no le and learned friend Lord $lac% urn# on t-e memorandum# seems to me to divide it in effect into t+o sti.ulations# t-e first ein) t-at if :r! 'oa%es# s-ould .ay do+n 7188# and t-e remainder of t-e actual sum of 758?8 1?s! in t-e manner .rescri ed# Mrs! $eer +ould so acce.t it# and .endin) t-e .ayments# +ould ta%e no .roceedin) on t-e ,ud)mentE and t-e second ein) t-at if t-e 758?8 1?s! s-ould e .aid in t-e manner indicated# s-e +ould relin>uis- -er claim for interest# and +ould not ta%e any .roceedin)s +-atever on t-e ,ud)ment to enforce t-at interest! T-e >uestion is +-et-er t-ere is any sufficient le)al consideration for t-e relin>uis-ment of t-e de t for

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interest! B am clearly of o.inion t-at t-ere is not! My no le and learned friend Lord $lac% urn -as s-e+n us very clearly t-at t-e resolution in Pinnel/s "ase 18? +as not necessary for t-e decision of t-at case# and t-at t-e .rinci.le on +-ic- it seems to rest does not a..ear to -ave een made t-e foundation of any su se>uent decision of t-e E=c-e>uer "-am er or of t-is House# and furt-er# t-at some of t-e distinctions +-ic- -ave een en)rafted on it# ma%e t-e rule itself a surd! $ut it seems to me t-at it is not t-e rule +-ic- is a surd# ut some of *629 t-ose distinctions# emanatin) from t-e an=iety of ,ud)es to limit t-e o.eration of a rule +-ic- t-ey considered often +or%ed in,ustice! T-at resolution in Pinnel/s "ase 118 -as never een overruled! 'or 585 years it seems to -ave een ado.ted y our ,ud)es! :urin) t-at +-ole .eriod it seems to -ave een understood and ta%en to e .art of our la+ t-at t-e .ayment of a .art of a de t t-en due and .aya le cannot alone e t-e foundation of a .arol satisfaction and disc-ar)e of t-e residue# as it rin)s no advanta)e to t-e creditor# and t-ere is no consideration movin) from t-e de tor# +-o -as done no more t-an .artially to .erform -is o li)ation! T-ou)- it may not -ave een made t-e su ,ect of actual decision# yet +e find t-at every ,ud)e in t-is country +-o -as -ad occasion to deal +it- t-e .ro.osition states t-e la+ to e so! *nd in t-e sister country it -as al+ays een so received# and in t-e case of "or.oration of :ro)-eda v! 'airtlou)- 111 Lefroy "!J! t-us e=.resses -imself;B may say t-at -is lan)ua)e is entitled to very considera le +ei)-tE -e +as a ,ud)e +-o -ad sat at t-e feet of Lord Denyon# and -e +as t-e +ellF%no+n re.orter of t-e decisions of Lord 2edesdale! T-at very learned ,ud)e t-us states t-e la+:;<T-ere is also a failure of evidence of t-e consideration for t-e contract to remove t-e rule of t-e common la+ t-at .ayment of a less sum cannot e a satisfaction of a )reater li>uidated sum# unless t-ere is some furt-er advanta)e accom.anyin) t-e .ayment!@ *nd in anot-er .art of -is ,ud)ment -e .uts t-e .ro.osition t-us:;<T-e .ayment merely of a less sum# not ein) in .ursuance of any contract y deed# cannot y t-e common la+ e deemed to e a satisfaction of a )reater li>uidated sum# ut t-e la+ +ill allo+ t-e .ayment of a smaller sum to e a satisfaction of a )reater li>uidated sum if t-ere e any collateral advanta)e# -o+ever small# to t-e creditor attendin) t-e transaction!@ T-e >uestion did arise directly in t-at case# ut t-e .lea failed in ot-er .oints# and it +as# t-erefore# not necessary actually to decide it! B refer to it as s-e+in) -o+ a ,ud)e of )reat e=.erience considered t-e la+ to stand! B am not a+are of any decision t-at controverts t-is .osition# and t-e te=tF oo%s uniformly .resent it t-usE t-at <t-e .ayment of .art of a li>uidated and ascertained sum is in la+ no *630 satisfaction of t-e +-ole!@ T-e .ro.osition itself is ut a .art of a rule of our la+# +-ic- affects and )overns many of t-e daily relations of life# <Nuda .actio o li)ationem non .arit!@ *nd# a)ain# t-e la+ says t-at <nudum .actum est u i nulla su est causa .rTter conventionem!@ B s-ould -esitate efore comin) to a decision +-ic- mi)-t e a serious inroad on t-at rule# ut B concur +it- my no le and learned friend t-at it +ould -ave een +iser and etter if t-e resolution in Pinnel/s "ase 115 -ad never een come to# and t-ere -ad een no occasion for t-e lon) list of decisions su..ortin) com.osition +it- a creditor on t-e rat-er artificial consideration of t-e mutual consent of ot-er creditors! &e find t-e la+ to -ave een acce.ted as stated for a )reat len)t- of time# and B a..re-end t-at it is not no+ +it-in our .rovince to overturn it! T-e s-ort >uestion t-en is# in relation to a ,ud)ment de t .aya le immediately# and on +-ic- t-e creditor is entitled to -ave e=ecution# is t-e .ayment y t-e de tor of a .art a sufficient consideration to su..ort a .arol a)reement y t-e ,ud)ment creditor not to ta%e any .roceedin)s +-atever on t-e ,ud)ment for t-e residueC Bn my o.inion it is notE and B t-in%# t-erefore# t-at t-e ,ud)ment of t-e "ourt of *..eal s-ould e affirmed!

(epresentation
Solicitor for a..ellant: &! H! Hudson ! Solicitors for res.ondent: Mac%ret-# $ramall# M &-ite ! "rder appealed from affirmed# and appeal dismissed $ith costs. %ords& 'ournals ()th *ay (++,.