COMMON LAW 257
B. Cases in which the prior obligation is of the nature of a debt.
- Cases may be divided into two classes—
(i) Satisfaction of debt by a Legacy.
(ii) Satisfaction of debt by a portion.
(i) Satisfaction of debt by a Legacy.
(1) This case arises where a debtor, without taking notice of the debt bequeathes a sum by way of legacy to his creditor. Question is : Is the legacy to be taken as satisfying the debt or is the creditor entitled to the legacy and also the debt ?
(2) Rule. —That the legacy shall be taken as satisfying the debt.
(3) Limitation on the Rule. —The rule does not apply in the following cases—
(i) Where the legacy is of lesser amount than the debt—no satisfaction, even protanto.
(ii) Where the legacy is given upon a contingency.
(iii) Where the legacy is of an uncertain amount— e.g. residue.
(iv) Where the time fixed for payment of the legacy is different from that at which the debt becomes due—so as to be equally advantageous to the creditor.
( v ) Where the subject-matter of the legacy differs from the debt, e.g. land.
(ii) Satisfaction of debt by Portion.
(1) Such a case arises where the father becomes indebted to his child and then advances a portion to him in his lifetime. The Question is : Can the child claim both—the debt as well as the portion ? Or Is the debt satisfied by the portion ?
(2) Rule. —Debt is satisfied by the portion.
(3) This rule is subject to the same limitations.
V. Difference between Performance and Satisfaction.
Further notes are not available—ed.)
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