Inner House First Division – A cautioner granted a letter guaranteeing to see J ‘duly paid for all goods you may supply from and after this date to the order of C.’ When the account between J and C was closed, a considerable sum remained owing to J, for which the cautioner repudiated liability. J thereafter accepted bills at three months from C for the sum due, and C having become bankrupt before the bills were met, but after a portion of the debt had been satisfied by cash payments, J sued the cautioner for the balance. Held that J, by taking the bills and thereby giving time to C, had liberated the cautioner- diss. Lord M’Laren, who held that the cautioner having repudiated liability, J was entitled to make the best terms he could with C.
Citations:
[1892] SLR 29 – 501
Links:
Jurisdiction:
Scotland
Contract
Updated: 18 August 2022; Ref: scu.613472
