A claim was made against the widow and administratrix of the deceased’s estate by his surviving brother. The widow wrote to the creditor: ‘Keep a check on totals and amounts I owe you and we will have account now and then . . .Sorry I cannot do you a cheque yet. Terribly short at the moment’ The court was asked whether this operated as an admission to extend the limitation period.
Held: An acknowledgment will be sufficient if the amount for which the debtor accepts legal liability can be ascertained by extrinsic evidence.
Judges:
Diplock LJ
Citations:
[1965] 1 WLR 1477
Jurisdiction:
England and Wales
Citing:
Applied – Spencer v Hemmerde HL 1922
A barrister borrowed 1,000 pounds for two months in 1910 but did not repay it. In 1915 the creditor pressed for payment and the debtor wrote to acknowledge the debt but asked for more time. The creditor ‘stayed his hand’. When proceedings were . .
Applied – Good v Parry CA 1963
A letter discussed first the writer’s proposed purchase of the house (offering andpound;1,350 subject to contract), and continued: ‘The question of outstanding rent can be settled as a separate agreement as soon as you present your account.’
Cited by:
Cited – Bradford and Bingley Plc v Rashid HL 12-Jul-2006
Disapplication of Without Prejudice Rules
The House was asked whether a letter sent during without prejudice negotiations which acknowledged a debt was admissible to restart the limitation period. An advice centre, acting for the borrower had written, in answer to a claim by the lender for . .
Lists of cited by and citing cases may be incomplete.
Limitation, Contract
Updated: 11 June 2022; Ref: scu.243121