William R. McKenzie v. . Thomas N. and W. R. Culbreth

66 N.C. 534

• Court: Supreme Court of North Carolina
• Decided: January 5, 1872
• Status: Published

Opinion

Reade, J.

The question presented is, whether a payment by the debtor and an acceptance by the creditor of a less sum than is due upon a bond, as a payment of the whole, is a discharge of the obligation so as to preclude the creditor from recovering the remainder of the bond ?

This principle is too well established and too long acquiesced in to be now disturbed ; that an agreement by a creditor, to receive a part in discharge of the whole of a debt due to him. by bond, is an agreement without consideration, and therefore void.

The doctrine is very well set forth in Warren v. Skinner, 20 Com. Law R. p. 559. Other authorities are abundant.

It is true that many cases are set down as exceptions to this general principle, for example :

1. If a less sum is agreed upon and received before the day of payment;

2. Or at a different place than the place originally agreed on.

3. Or if something other than money, and really of less value than the debt is agreed upon and received in satisfaction, the Court will not consider the value to be other than as the parties have agreed upon it.

3. Or if there be a general settlement between creditors and their debtor, and a discharge upon payment ot less than the whole amount.

In these and in all other cases set down as exceptions to the general rule, there is some consideration, great or small, to support the agreement, and avoid the objection of nudumpac-imn.

There is no error

Rer Curiam. Judgment affirmed.