Leigh v McLinton [1991] JLR 274 (26 September 1991)

A lender who voluntarily states that repayment of a loan is to be on a moral basis only cannot legally enforce repayment, as a moral obligation does not create a legally binding contract.

Citation: [1991] JLR 274
Parties: Lender: Leigh; Borrower: McLinton
Jurisdiction: Jersey
Judgment Date: 26 September 1991
Procedural Posture: Civil / Judgment
Outcome: claim dismissed
Legal Topics: Loans, Repayment, Moral Obligation, Enforceability

Contract Law Loans Repayment Moral Obligation Enforceability

Case Brief

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Parties

Leigh

Lender

McLinton

Borrower

Procedural Posture

Civil / Judgment

Legal Issues

1 Whether a loan repayment can be enforced when the lender has stated repayment is to be on a moral basis only.

Ratio Decidendi

A lender who voluntarily states that repayment of a loan is to be on a moral basis only cannot legally enforce repayment, as a moral obligation does not create a legally binding contract.

Court Disposition

claim dismissed