Reed v. Cassatt

Citations

• 153 Pa. 156
• 25 A. 1074
• 1893 Pa. LEXIS 1067

Syllabus

<p>Contract — Promissory note — Collateral agreement — Interest.</p> <p>Defendant executed a promissory note whereby he agreed to pay plaintiff “the sum of seven thousand dollars, with interest, on the 24th day of July, 1877, subject to agreements dated July 24, and August 8, 1872, interest payable semi-annually.” The collateral agreements referred to in the note provided that in case the note should not be paid at maturity plaintiff should look to certain securities alone for payment of the note, and he expressly waived all right to proceed at law. or otherwise, against any other property of defendant. Held, that plaintiff could not sustain an action to recover interest on the note, as, under the agreement, no personal liability attached to the maker for the payment of either principal or interest.</p> <p>In this case there was no distinction between the interest accruing every six months and interest accruing during the whole period. If the obligee did not collect his semiannual payments, they simply remained unpaid, and were a constituent part of the entire sum of principal and interest due at the maturity of the paper. As such, the interest was simply a part of the gross sum due, and was to be collected in the same way as the principal.</p>