PAYMENT, in law, the discharge in money of a sum due, or, in a more general sense, the fulfilling of any obligation assumed. In order to be effectual the payment must be made by one having it right to do it, must he in kind and quantity such as will satisfy the contract, must be made to the person legally entitled to receive it and at the time and place agreed upon or implied by law. Payment may be to an agent only when the latter is authorized to receive it, either specially or by general usage or implication of law. Thus if payment is made to the wife of a creditor it is not sufficient unless it be shown that she is allowed by the husband to collect debts and transact business for him. The payment must be made in Money unless it be specially provided that goods are lobe received or personal service accepted. So if an agent have authority in general to receive payment, and without special authority so to do, take goods, the creditor will not be hound by the agent's receipt. The U. S. constitution gives congress the power to • declare what is a legal tender; that is what mai be demanded and must be taken if offered. See MoNEY. Subsidiary copper coins are not legal tender, The most usual evidence of payment is a receipt, but this is only prima facie evidence and may be over thrown by proof of non-payment either of a pat or the whole. Where the sum is sent by mail, express, or messenger, if the debtor remit in compliance with the exact instruc tions of his creditor, the former is relieved from responsibility for loss. The giving of a check is not such a payment as will discharge a debt until the check has been cashed; and the drawer remains liable unless there have been gross negligence on the part of the holder. But where negotiable paper is given, the creditor may signify his acceptance of the transfer as good payment. A hill of exchange drawn on a third person, and by him accepted, discharges the drawer. Where two or more parties stand in the position of joint creditors, (as in a bank deposit) the payment should not be to one unless the debtor have the direct consent of the others. But there arc exceptions in the ease of partner ship, executors, and trustees. Thus, if money be paid to a trustee and be misappropri ated, the ceetui que trust has no claim as against the original debtor. The compromise of a debt by accepting a partial payment in discharge of the whole debt was until recently considered as not being of effect, on the ground of want of consideration and to prevent the exertion of undue pressure or taking of advantage. But it is uo• fully established
that if the compromise be untinged by fraud or undue influence, the ins/ huge is com plete. Payment of a part may go to the jury as evidence tending to show payment of the whole. The question as to whether there have been acceptance or not is one for the jury and depends on evidence of the intent of the parties at the time. It is now gener ally Held that any act of a third party which is accepted by the creditor as payment will act as a discharge. Payment by or to an attorney is as good as though the principal had acted. As to the time of payment. courts of law hold strictly to the rule that it must he on the exact (lay agreed upon, but subsequent payment may in Ninny cases be compelled by courts of equity. If no day be specified the payment must he on demand. Where payment has been made in bank notes which proved to be forged or counterkit, there is no discharge of the obligation. Where the notes are not forged, hut the bank of issue proves insolvent, the general rule is that the loss should fall on the payer,,but if the bank were solvent at the time of acceptance, and the loss occurred through the unreasonable delay of the payee in presenting the bills, he must sustain the loss, As in the case of cheeks and negotiable paper, the question as to what is unreasonable delay most he determined by the court in view of the special features of each case. Payment of part of a debt bars the action of the statute of limitations. In England it has been held that money paid under a mistake of law cannot be recovered, but in this country a distinction is made between iqnorantia legis and mistake. The rules for the appropria tion of payments are important. Appropriation consists in the application of money paid to one or more of several debts due from the payer to the payee. There are three cases;—where the debtor applies, where the creditor applies, and where the appropria tion is made by law. The debtor has the first right to say to which debt the pay ment shall apply, and if he neglect to do so, the creditor may exercise the same right; but the latter cannot so apply the money as to revive debts barred by the statute of Iimita tions. 'Where the payment is a forced one, as upon judgment and execution, the money must be applied pro rata upon all claims. When the appropriation is made by order of the court, it is usual to prefer the least secured debt, but in other respects the debtor is usually favored, as in applying money to a mortgage rather than to a contract debt.