Hummelstown Brownstone Co. v. Knerr

Citations

• 25 Pa. Super. 465
• 1904 Pa. Super. LEXIS 94

Syllabus

<p>Promissory notes — Payment—Collateral—Extension of time — Presumption.</p> <p>Where a creditor takes from his debtor a note payable at a future day, on account of his claim, the law raises no implication that he agrees to give time until the maturity of the note, for the payment of the alleged debt, but the agreement must be proved as a fact.</p> <p>Nothing is better settled than that in the absence of any special agreement to the contrary, the mere acceptance by a creditor from his debtor of a note or check of a third person to the creditor’s order, for a preexisting indebtedness, is not absolute but- merely conditional payment, defeasible on the dishonor or nonpayment of the note or check, and in that event the debtor remains liable for his original debt.</p> <p>Promissory notes — Payment—Principal and surety — Bond—Municipal contract.</p> <p>In an action by a subcontractor against a municipal contractor and his sureties on a bond given for the faithful performance of the contract and for payments to all persons supplying the contractor with labor or material, the sureties have no ground for defense merely because the plaintiff received from the contractor certain notes, where there is nothing to show that the notes were accepted as payment, or that any unreasonable extension of time was given, or that the original obligation was in any way changed.</p>