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See also:PAYMENT (Fr. paiement, from payer, to pay; See also:Lat. pacare, to appease, See also:pax, See also:peace) , the performance of an See also:obligation, the See also:discharge of a sum due in See also:money or the See also:equivalent of money . In See also:law, in See also:order that See also:payment may extinguish the obligation it is necessary that it should be made at a proper See also:time and See also:place, in a proper manner, and by and to a proper See also:person . If the sum due be not paid at the appointed time, the creditor is entitled to See also:sue the debtor at once, in spite of the readiness of the latter to pay at a later date, subject, in the See also:case of bills and notes, to the See also:allowance of days of See also:grace . In the See also:common case of See also:sale of goods for ready money, a right to the goods vests at once upon sale in the purchaser, a right to the See also:price in the seller; but the seller need not See also:part with the goods till payment of the price . Payment may be made at any time of the See also:day upon which it falls due, except in the case of See also:mercantile contracts, where the creditor is not See also:bound to wait for payment beyond the usual See also:hours of mercantile business . If no place be fixed for payment, the debtor is bound to find, or to use reasonable means to find, the creditor, unless the latter be abroad . Payment must be made in money which is a legal See also:tender (see below), unless the creditor waive his right to payment in money by accepting some other mode of payment, as a negotiable See also:instrument or a See also:transfer of See also:credit . If the payment be by negotiable instrument, the instrument may operate either as an See also:absolute or as a conditional discharge . In the See also:ordinary case of payment by See also:cheque the creditor accepts the cheque conditionally upon its being honoured; if it be dishonoured, he is remitted to his See also:original rights . If payment be made through the See also:post, in a See also:letter properly directed, and it be lost, the See also:debt is discharged if there was a direction so to transmit the money . The creditor has a right to payment in full, and is not bound to accept part payment unless by See also:special agreement . Part payment is sufficient to take the debt out of the See also:Statute of See also:Limitation . It is a technical See also:rule of See also:English law that payment of a smaller sum, even though accepted by the creditor in full See also:satisfaction, is no See also:defence to. a subsequent See also:action for the. debt . The See also:reason of this rule seems to be that there is no See also:consideration for the creditor foregoing his right to full payment . In order that payment of a smaller sum may satisfy the debt, it must be made by a person other than the person originally liable, or at an earlier date, or at another place, or in another manner than the date, place, or manner contracted for . Thus a See also:bill or See also:note may be satisfied by money to a less amount, or a money debt by a bill or note to a less amount; a debt of £See also:loo cannot be discharged by payment of £90 (unless the creditor execute a See also:release under See also:seal), though it may be discharged by payment of Do before the day appointed, or by a bill for £1o . Payment must in See also:general be made by the debtor or 1 s See also:agent, or by a stranger to the See also:contract with the assent of the debtor . If payment be made by a stranger without the assent of the debtor, it seems uncertain how far English law regards such payment as a satisfaction of the debt . If the debtor ratify the payment, it then undoubtedly becomes a satisfaction . Payment must be made to the creditor or his agent . A See also:bona fide payment to an apparent agent may be See also:good, though he has in fact no authority to receive it . Such payment will usually be good where the authority of the agent has been countermanded without See also:notice to the debtor . The fact of payment may be presumed, as from See also:lapse of time . Thus payment of a testator's debts is generally presumed after twenty years . A written See also:receipt is only presumptive and not conclusive See also:evidence of payment . By the See also:Stamp See also:Act 1891 a See also:duty of one See also:penny is imposed upon a receipt for or upon the payment of money amounting to £2 or upwards, and also a See also:fine of £Io upon any person who, in any case where a receipt would beliable to duty, refuses to give a receipt duly stamped . If payment be made under a See also:mistake of fact, it may be recovered, but it is otherwise if it be made under a mistake of law, for it is a See also:maxim of law that ignorantia legis neminem excusat . Money paid under compulsion of law, even though not due, cannot generally be recovered where there has been no See also:fraud or See also:extortion . For See also:appropriation of payments see APPROPRIATION . Payment Into and Out of See also:Court: Money is generally paid into court to abide the result of pending litigation, as where litigation has already begun, as See also:security for See also:costs or as a defence or partial defence to a claim . Payment into court does not necessarily (except in actions for See also:libel and See also:slander) operate as an See also:admission of liability . Payment into court is regulated by the Rules of the Supreme Court, O. xxii . The fact that money has been paid into court may not be mentioned to a See also:jury . Money may sometimes be paid into court where no litigation is pending, as in the case of trustees . Payment of money out of court is obtained by the order of the court upon See also:petition or See also:summons or otherwise, or simply on the See also:request or the written authority of the person entitled to it . Payment of See also:Wages.—The payment of wages to labourers and workmen otherwise than in See also:coin is prohibited . See LABOUR LEGISLATION: See also:Truck . Domestic or agricultural servants are excepted . Payment of wages in public-houses (except in the case of domestic servants) is illegal . Tender.—This is payment duly proffered to a creditor, but rendered abortive by the act of the creditor . In order that a tender may be good in law it must as a rule be made under circumstances which would make it a good payment if accepted . The money tendered must be a legal tender, unless the creditor waive his right to a legal tender, as where he See also:objects to the amount and not the mode of tender . See also:Bank of See also:England notes are legal tender for any sum above £5, except by the bank itself . See also:Gold is legal tender to any amount, See also:silver up to 40s., See also:bronze up to Is . (Coinage Act 1870) . Any gold coinage, whether See also:British, colonial or See also:foreign, may be made legal tender by See also:proclamation . The effect of tender is not to discharge the debt, but to enable the debtor, when sued for the debt, to pay the money into court and to get See also:judgment for the costs of his defence . See also:Scotland.—The law of Scotland as to payment agrees in''m6st points with that of England .
Where a debt is constituted by See also:writ payment cannot be proved by witnesses; where it is not constituted by writ, payment to the amount of Doc) Scots may be proved by witnesses; beyond that amount it can only be proved by writ or See also:oath of party
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The See also:term tender seems to be strictly applied only to a judicial offer of a sum for See also:damages and expenses made by the defender during litigation, not to an offer made by the debtor before litigation
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Bank of England notes are not a legal tender in Scotland or in See also:Ireland
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See also:United States.—In the United States the law as a rule does not materially differ from English law
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In some states, however, money may be recovered, even when it has been paid under a mistake of law
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The question of legal tender has been an important one
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In 1862 and 1863 See also:Congress passed acts making See also:treasury notes legal tender (see See also:GREENBACKS)
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After much litigation, the Supreme Court of the United States decided in 1871 (See also:Knox v
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See also: It falls exclusively within the See also:jurisdiction of Congress to declare See also:paper or See also:copper money a legal tender . By the constitution of the United States, " no See also:state shall . .. make anything but gold and silver coin a tender in payment of debts " (See also:art. i . § 1o) . (T . A . |
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