This section is from the book "A Commentary On The Law Of Contracts", by Francis Wharton. Also available from Amazon: A Commentary On The Law Of Contracts.
A creditor, also, under the English system, may appropriate a payment to a claim not recoverable by action, provided there is a sufficient consideration to support the claim.7 Even a debt barred by the In our law this agency is not recognized.
Creditor may appropriate to 1 Mills V. Fowkes, 5 Bing. N. C. 461; see Clayton's case, 1 Mer. 605.
2 Leake, 2d ed. 918; Benj. on Sales, 3d Am. ed. sec 748; Peters V. Anderson,.
5 Taunt. 596; Bosanquet V. Wray, 6 Taunt. 597; Goddard V. Hodges, 1 C.
& M. 33; Kirby V. Marlborough, 2 M. & S. 18; Cremer V. Higginson, 1 Mason, 338; Com. Nat. Bk. V. Mech. Nat. Bk., 94 U. S. 437; Shipsey V. Bowery Bk., 59 N. Y. 485; Harding V. Tifft, 75 N. Y. 461; Smuller V. Union Canal Co., 37 Penn. St. 68; Lewis V. Pease, 85 111. 35; Davis Sewing Machine V. Buckles, 89 111. 237; Jones V. Kilgore, 2 Rich. Eq. 64; Caxwell V. De Vaughan), 55 Ga. 643; see Upham V. Lefavour, 11 Met. 184.
3 Dickin ex parte, L. R. 20 Eq. 767;.
Harding V. Tifft, 75 N. Y. 461. See Ramsay V. Warner, 97 Mass. 8; 13, 14, for discussion of this topic by Hoar, J., and see Field V. Holland, 6 Cranch, 8.
4 Stoveld V. Eade, 4 Bing. 154; Pat-tison V. Hall, 9 Cow. 747; Sanders V. Knox, 57 Ala. 80; and see cases supra, sec 924. That the creditor's interest is the test, see further Field V. Holland, 6 Cranch, 8; Briggs V. Williams, 2 Vt. 283; Capen V. Alden, 5 Met. 268.
5 Pattison V.Hull, 9 Cow. 747.
6 McTavish V. Carroll, 1 Md. Ch. 160; Bussey V. Gant, 10 Humph. 238; and see Ch. on Cont. 11th Am. ed. 1114, citing further Briggs V. Williams, 2 Vt. 286; Dows V. Morewood, 10 Barb. 183.
7 Leake, 2d ed. 919; Benj. on Sales, 3d Am. ed. sec 748; Arnold V. Poole, 4 statute of limitation may be thus paid.1 The creditor may also appropriate to a debt which is not recoverable under the statute of frauds,2 or for which, by local law, no suit can be brought; e. g., debts to which local penalties are attached.3 But the creditor cannot apply a payment to a debt in itself illegal, as " a claim for usurious interest, a charge for articles sold contrary to law, and the like."4 Nor can he appropriate to an unfounded claim for which there is no legal or equitable consideration.5 - Where there are two classes of claims, one legal and the other illegal, a payment not specially designated will be appropriated to the discharge of the legal debt,6 and there can be no appropriation by the creditor to a debt which is for a consideration explicitly prohibited by the lex fori.7 - An appropriation by the creditor so as to extinguish part of a debt barred by the statute of limitations, does not take the remainder of the debt out of the statute.8 debts not recoverable.
M. & G. 860; Philpott V. Jones, 2 A. & E. 41; Owens V. Denton, 1 C. M. & R. 712.
1 Mills V. Fowkes, 5 Bing. N. C. 455; Waugh V. Cope, 6 M. & W. 824; Ashby V. James, 11 M. & W. 542; Jackson V. Barker, 1 Dill. 311; Murphy V. Webber, 61 Me. 478; Brown V. Bnrnes, 67 Me. 535; Bancroft V. Dumas, 21 Vt. 456; and cases cited infra, sec 933; Pond V. Williams, 1 Gray, 630; Ramsay V. Warner, 97 Mass. 8; but see Burn V. Boulton, 2 C. B. 476; Wood V. Wylds, 6 Eng. Ark. 754; Moniteau Bk. V. Miller, 73 Mo. 187.
2 Haynes V. Nice, 100 Mass. 327.
3 Dawson V. Remnant, 6 Esp. 24, which Mr. Benj. (Sales, 3d Am. ed. sec 788) tells us is approved in Laycock V. Pickles, 4 B. & S. 507; Philpott V. Jones, 2 Ad. & E. 41; Crookshank V. Rose, 5 C. & P. 19.
4 Story Eq. Jur. 12th ed. sec 4596; citing Caldwell V. Wentworth, 14 N. H. 431; Ayer V. Hawkins, 19 Vt. 26; Bancroft V. Dumas, 21 Vt. 456; Rohan V. Hanson, 11 Cush. 44; Parehman V. M'Kinney, 12 Sm. & M. 631.
5 Leake, 2d ed. 920; Benj. on Sales, 3d Am. ed. sec 749; Nash V. Hodgson, 6 D. M. & G. 474; Lamprell V. Billericay Union, 3 Ex. 283; James V. Child, 2 Cr. & J. 678; West Branch Bk. V. Moorehead, 5 W. & S. 542; Quigley V. Duffey, 52 Iowa, 610; Scheffer V. Tozier, 25 Minn. 478.
6 Benj. on Sales, 3d Am. ed. sec 748; Wright V. Laing, 3 B. & C. 165; Caldwell V. Wentworth, 14 N. H. 431; Kidder V. Norris, 18 N. H. 532; Bancroft V. Dumas, 21 Vt. 456; Rohan V. Hanson, 11 Cush. 44; Warren V. Chapman, 105 Mass. 87; Huffstater V. Hayes, 64 Barb. 573; Albert V. Lindau, 46 Md. 334.
7 Starkey V. Gabby, 1 Cr. & Dix, 248; Phillips V. Moses, 65 Me. 70; Caldwell 'Wentworth, 14 N. H. 431; Bancroft V. Dumas, 21 Vt. 456; Rohan V. Hanson, 11 Cush. 44; Ramsay V. Warner, 97 Mass. 8; Warren V. Chapman, 105 Mass. 87.
8 Nash V. Hodgson, 6 M. & G. 474;.
 
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