What is the test for applying a demand to a creditor's account?

Alberta, Canada


The following excerpt is from Alberta Treasury Branches v. Blackhorse Transportation Ltd., 2010 ABQB 475 (CanLII):

Where a demand is made and fund are applied by a creditor must first apply the receipted funds to the account upon which the demand was made: St-John v. Rykert, [1884] Carswell ONT 15 (S.C.C.).

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