Reeves v. Stipp

Citations

• 91 Ill. 609

Syllabus

<p>1. Interest erom date—to insure prompt payment. Where a promissory note provides for the payment of ten per cent interest from date if not paid when due, it may be regarded as an agreement to pay a specific sum of money with interest from date, with the privilege to the maker to pay the principal without interest at maturity. If this is not done, the absolute agreement remains in force as made, and may he enforced.</p> <p>2. Same—not released by party’s death. Where parties understandingly and fairly enter into a contract for the payment of money by the one to the other, agreeing to pay a certain lawful rate of interest from date, if not paid when due, the death of the debtor before maturity will not discharge his estate from the payment of the interest.</p> <p>3. Contract—when provision is penalty, and when liquidated damages. Whether the sum named in an agreement to secure performance is to be treated as liquidated damages, or as a penalty, must depend upon the intention of the parties where that can be ascertained, and this is the case where the parties call such sum neither penalty nor liquidated damages, but simply interest.</p>