Foot v. Rawlings

Foot v. Rawlings

The successive delivery of post‑dated cheques constituted good consideration for the creditor's agreement to forbear; therefore the creditor's right to sue was suspended while the debtor performed under that agreement and the action issued before any default was premature and must be dismissed.

Citation
[1963] SCR 197
Parties
Defendant Appellant: E. H. M. Foot; Plaintiff Respondent: Leon H. Rawlings
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 March 1963
Procedural Posture
Contract / Appeal to Supreme Court of Canada From Court of Appeal for British Columbia
Outcome
appeal allowed
Legal Topics
Forbearance, Consideration, Promissory Notes, Suspension of Right to Sue, Premature Action
Source Language
English
Contract Forbearance Consideration Promissory Notes Suspension of Right to Sue Premature Action

Case Brief

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Parties

E. H. M. Foot

Defendant Appellant

Leon H. Rawlings

Plaintiff Respondent

Procedural Posture

Contract / Appeal to Supreme Court of Canada From Court of Appeal for British Columbia

Legal Issues

  1. 1 Whether the written and oral agreement suspended the plaintiff's right to sue on the promissory notes at the date the writ was issued
  2. 2 Whether delivery of successive series of post‑dated cheques constituted good consideration for the plaintiff's forbearance
  3. 3 Whether the cheques dated two days late and plaintiff's conduct constituted default by the defendant

Ratio Decidendi

The successive delivery of post‑dated cheques constituted good consideration for the creditor's agreement to forbear; therefore the creditor's right to sue was suspended while the debtor performed under that agreement and the action issued before any default was premature and must be dismissed.

Court Disposition

appeal allowed

Orders

  • set aside judgments of the Court of Appeal and trial judge
  • judgment entered dismissing the action