Stickler v. Giles

Citations

• 9 Wash. 147
• 37 P. 293
• 1894 Wash. LEXIS 272

Syllabus

<p>EXTENSION OE TIME OE PAYMENT — CONSIDERATION —INTEREST.</p> <p>Where a debtor, in order to gain time on his account with a creditor, goes to the latter and tells him that he has obtained a contract for doing certain work for the county, that he will get his first estimate upon said work from the 12th to the 15th of August, and that he will then pay the bill with interest at the usual rate of ten per cent., to which the creditor replies that it is all right, he will wait, such agreement does not constitute a contract for the extension of the payment of the account to a certain definite time.</p> <p>A stated account between parties draws interest at the legal rate, and a-promise to pay the legal rate of interest on such an account does not constitute a consideration for an extension of the time of payment.</p> <p>A verbal agreement to pay interest “at the usual rate of ten per cent.” on an account stated, that being the legal rate at the time, does not bind the promisor to pay more than eight per cent, from the date of the taking effect of a law passed subsequent to the agreement fixing the legal rate at eight per cent., but providing that any other rate could be collected when an agreement therefor was specified in writing.</p>