Bank of British Columbia v. Jeffs

Citations

• 18 Wash. 135
• 51 P. 348
• 1897 Wash. LEXIS 123

Syllabus

<p>PROMISSORY NOTES — PAYMENT OF INTEREST IN ADVANCE — IMPLIED CONTRACT OF EXTENSION.</p> <p>Where a creditor, without inadvertence or mistake, receives a payment of interest in advance on the note of a debtor; and does not expressly reserve the right to sue before the expiration of the period for which interest is taken, there is á contract created to extend the time of payment during the period for which the interest is paid.</p> <p>The contract of forbearance to sue implied by law from the payment and acceptance of interest in advance is not overcome by the facts that it had been the custom of the debtor to pay interest from month to month, payments being made sometimes in advance and sometimes after the expiration of the month; and that at the time of the advance payment in controversy there had been neither a request for an extension by the debtor nor an express reservation by the creditor of a right to sue.</p>