Pyle v. Gentry

Citations

• 127 Miss. 784
• 90 So. 485

Syllabus

<p>1. Damages. Only damages allowable for failure to pay when due is legal interest.</p> <p>An agreement in a deed of trust on land to secure the payment of several promissory notes at maturity that, if the grantor fails to meet any of the notes when due, he will pay the holder thereof a fixed sum of money as rent with no provision for the credit thereof on the notes or on the interest to accrue thereon, is unenforceable, whether it is held to provide for liquidated damages or for a penalty, for the only damages allowed by law for the failure to pay money when due is legal interest thereof.</p> <p>2. Damages. Conventional penalty is enforceable only to extent of actual damages for breach of contract.</p> <p>A conventional penalty cán be enforced only to the extent of the actual damages sustained because of a breach of the contract.</p> <p>3. Judgment. Maker not a party to action against indorsers not bound by judgment.</p> <p>Although a holder of a promissory note has obtained judgment against the indorsers thereon; the maker of the note, if not a party to the judgment, will not be bound thereby in a suit against him by the in-dorsers thereon, but will be liable to them only for the amount that was actually due by him on the note.</p>