Ritchie v. Cowan & Kinghorn [1901] ScotLR 38_788 (09 July 1901)

Ritchie v. Cowan & Kinghorn [1901] ScotLR 38_788 (09 July 1901)

The receipt and discharge of 7th June 1899, including the phrase 'it being, however, understood that the said James Ritchie will pay the balance of 10s. per £ whenever he is able to do so,' did not create a legally enforceable obligation but only an honourable understanding. The defenders' claim for set-off fails as the debt was discharged, and no subsequent agreement altering this was proved.

Citation
[1901] ScotLR 38_788
Parties
Pursuer: James Ritchie; Defenders: William B. Cowan & Kinghorn
Jurisdiction
Scotland
Judgment Date
09 July 1901
Procedural Posture
Civil / Appeal From Sheriff Substitute to Court of Session Inner House Second Division
Outcome
appeal dismissed; decree for pursuer
Legal Topics
Composition With Creditors, Discharge of Debt, Honourable Understanding Vs Legal Obligation, Set Off
Contract Law Obligations Composition With Creditors Discharge of Debt Honourable Understanding Vs Legal Obligation Set Off

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Parties

James Ritchie

Pursuer

William B. Cowan & Kinghorn

Defenders

Procedural Posture

Civil / Appeal From Sheriff Substitute to Court of Session Inner House Second Division

Legal Issues

  1. 1 Whether the receipt and discharge of 7th June 1899 created a legally enforceable obligation for the pursuer to pay the balance of the debt whenever able
  2. 2 Whether the defenders were entitled to set off sums due to the pursuer against the alleged unpaid balance
  3. 3 Whether a subsequent agreement altered the original arrangement

Ratio Decidendi

The receipt and discharge of 7th June 1899, including the phrase 'it being, however, understood that the said James Ritchie will pay the balance of 10s. per £ whenever he is able to do so,' did not create a legally enforceable obligation but only an honourable understanding. The defenders' claim for set-off fails as the debt was discharged, and no subsequent agreement altering this was proved.

Court Disposition

appeal dismissed; decree for pursuer

Orders

  • Decern against the defenders for payment of £1229, 13s. 3d. to the pursuer
  • Defenders' claim for set-off repelled