A proprietor borrowed on the security of his estates certain sums. The conditions on which the loan was made were expressed in a minute of agreement. One of the conditions was, that provided the interest on the loan ‘be punctually paid in terms of the bond,’ the lenders agreed (1) not to call in the loan for a period of fourteen years, and (2) to modify the rate of interest to 4 per cent. A quarterly payment of interest in terms of the bond became payable on 1st August 1918. It was not paid till 8th August 1918. Held ( aff. judgment of the First Division) that there had not been punctual payment in terms of the bond, and that in the circumstances the lenders had not barred themselves by their actings from insisting upon payment on the exact date.
Judges:
Lord Chancellor, Viscount Finlay, Lord Dunedin, Lord Atkinson, and Lord Shaw
Citations:
[1920] UKHL 63, 58 SLR 63
Links:
Jurisdiction:
Scotland
Contract
Updated: 30 November 2022; Ref: scu.631547