What is the test for whether a bill or note is given and taken in satisfaction as a conditional payment?

Saskatchewan, Canada


The following excerpt is from Roycroft v. Uglum and Stephanson, 1922 CanLII 175 (SK CA):

In Leake on Contracts, 6th ed., at p. 653, the learned author states: Whether a bill or note is given and taken in satisfaction or as conditional payment is a question of fact as to the intention shown by the parties; the presumption being that it is a conditional payment with a recourse to the original debt. Goldshede v. Cottrell (1836) 2 in & W 20 6 L.J. Ex. 26.

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