Scottish Court of Session Decisions

Subject_1 LETTER OF CREDIT.

Mansfield
v.
Weir

1749, July 29.
Case No. No. 4.

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Johnston, merchant in Edinburgh, being broke, but having a claim against Wardon under submission, which his arbiter thought might produce L.150 sterling, Weir, Johnston's brother-in-law, was persuaded in summer 1744 to apply to Mansfield, and gave him a letter bidding him give credit to Johnston to the extent of L.150 sterling, and he would see him paid. Mansfield gave him on his note L.10, and he immediately opened shop, and Mansfield gave him credit on English merchants, who accordingly furnished him goods, and drew bills at different times, and some of them payable at a great distance of time, and some drawn on Mansfield himself, some on Johnston payable to Mansfield. Johnston broke about Whitsunday 1746, and Mansfield sued Weir to the extent of L.150, whose defence was, want of notice that credit was furnished, or to what extent, or that it was not paid. Answered, This was not an ordinary letter of credit, but a cautionry for an indigent brother who he knew was not able to pay, and as he lived in the same town at least till August 1745, he behoved to know, when he opened shop that the credit was used. My difficulty was, that as he could not know to what extent the credit was used, he could less know that the money was not paid; that merchants carry on trade on credit, and by long forbearance keep their credit and answer their bills with the proceeds. Howsoever, it carried to find Weir liable. Kilkerran, Murkle, and I, did not vote. 23d June Refused, and adhered.