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Last year a man named Pemberton was indebted to tbe London County and Westminister Bank in a small sum by way over' draft which bad been granted to him and which was to be repaid on August 9th. A moratorium was declared, giving all debtors an extension ot one month within whioh to pay. Just before the agreed upon date of repayment Pemberton paid sufficient funds to the credit of his account to extinguish his indebtedness to tbe bank ; the following day he signed a oneque for the full amount paid in, less two or three pounds. Tbis cheque the bank dishonoured upon the ground tbat the credit balance was insufficient. Pember. ton sued for damages for breach of contract and for libel alleging that the bank had no right to refuse payment of his draft as he had paid in more than sufficient to cover the day before, To this the bank replied : "The funds you paid in were not available, as we used those to extinguish your overdraft. You promised to pay on the 9tb, and you paid in on that day and gave us no notice that you did not intend to discbarge your debt." Pemberton'B replication to this was: "You know very well tbat the moratorium had extended the date upon,which I agreed to pay. I certainly agreed to disoharge my liability with {you on tbe 9th of August, but you are well aware that owing to the moratorium, no liability to clear the overdraft de* volved upon me until September 9th. Yon had no legal claim upon me before tbat date and bad no right to annex my credit balance to pay a debt to yourself a month before it was due." The Court hald tbat plaintiff's reasoning was' unassailable from the legal point of view; and ordered the bank to pay damages and costs.—''Mercantile Gazette."

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Bibliographic details

THE MORATORIUM IN ENGLAND., Akaroa Mail and Banks Peninsula Advertiser, Volume LXXIV, Issue 3451, 20 April 1915

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THE MORATORIUM IN ENGLAND. Akaroa Mail and Banks Peninsula Advertiser, Volume LXXIV, Issue 3451, 20 April 1915

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