The holder of the promissory note gave a parol renunciation of all his rights. Further he delivered the promissory note back to a devisee of its maker, on whose real estate the obligations under the note were charged, and who had kept up the payments of interest.
Held: This did not work to discharge the promissory note. Section 62(1) of the 1882 Act would probably operate to include the ‘maker’ and his executors and or dministrators, but could not be extended to include a devisee of his estate. At law, an exoneration before any breach need not be made under seal, but a release of the note has to be under seal to be effective unless it could be brought within one of the exceptions provided by the 1882 Act.
Lindley LJ said, ‘A release in equity is often spoken of as something easy to establish. But I am not aware of any circumstances which amount to a release in equity and not at law except an agreement for valuable consideration to give a release or not to sue. Such an agreement, unless there is some reason for not enforcing it, has in equity the effect of a release.’
Judges:
Lindley LJ
Citations:
[1896] 2 Ch 157, 65 LJ Ch 557, 74 LT 396, 44 WR 547, 12 TLR 359, 40 Sol Jo 477
Statutes:
Bills of Exchange Act 1882 62(1)
Jurisdiction:
England and Wales
Equity, Contract
Updated: 08 May 2022; Ref: scu.565102
