The Law of Contracts volume 3

Cover The Law of Contracts volume 3
The Law of Contracts volume 3
Herbert William Page
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Powers, 108 Mich. 339; 66 X. W. 215; Coxe v. Milbrath. 110 Wis. 499; 86 X. W. 174.
9 Hanson v. Manley, 72 la. 48 ; 33 N. W. 357.
10 Plain v. Roth, 107 111. 588; Hanson v. Manley, 72 la. 48; 33 X. W. 357; Burks v. Albert. 4 J. J. Mar. (Ky. ) 97; 20 Am. Dec. 209; 2186 PAGE ON CONTRACTS.
debt wliich B lias guaranteed may apply A's deposits to the payment, of checks drawn by A/^ The creditor may appro- priate one payment among two or more debts. ^' The creditor may "even apply payments to debts whi
...ch for some technical reason are unenforceable, but are on valuable consideration and are not tainted with illegality. Thus he may apply a pay- ment to a debt unenforceable because of non-compliance with the statute of frauds/^ or the stamp act/* or a debt barred by the statute of limitations/^ or unenforceable because contracted when the debtor was an infant.^® The creditor cannot, how- ever, make any application of such payment as will be unfair or unjust to the debtor. Thus he cannot apply the payment to a claim which is in dispute in preference to one whose correct- ness is conceded, ^^ or to a claim which has been paid before, ^^ or to an illegal claim instead of a legal one, ^** even if such legal and illegal items are in one account, ^" as to an usurious contract in preference to a legal one.

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