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Template:M intro repack merger of debt: Difference between revisions
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The theory is this: ''you cannot have a contract with yourself''. You cannot owe yourself money. If, therefore, you acquire your own [[promissory note]] — however you come by it, if you do — then at the point where you become its [[Bearer security|bearer]], ''there is no longer a [[debt]]''.<ref>Halsbury tells us, at 418, “In some circumstances a contract is discharged by merger when the rights and liabilities under the contract come together in the same person, the reason being that a person cannot maintain an action against {{sex|himself}}. Thus when the acceptor of a bill of exchange is or becomes the holder of it in his own right, at or after its maturity, the bill is discharged.” Hmmm. In fact the “reason being” is that this is what the [https://www.legislation.gov.uk/ukpga/Vict/45-46/61/part/II/crossheading/discharge-of-bill# Bills of Exchange Act 1882] specifically provided. And note: “''at or after maturity''”. </ref> It might somehow ''vanish''. | The theory is this: ''you cannot have a contract with yourself''. You cannot owe yourself money. If, therefore, you acquire your own [[promissory note]] — however you come by it, if you do — then at the point where you become its [[Bearer security|bearer]], ''there is no longer a [[debt]]''.<ref>Halsbury tells us, at 418, “In some circumstances a contract is discharged by merger when the rights and liabilities under the contract come together in the same person, the reason being that a person cannot maintain an action against {{sex|himself}}. Thus when the acceptor of a bill of exchange is or becomes the holder of it in his own right, at or after its maturity, the bill is discharged.” Hmmm. In fact the “reason being” is that this is what the [https://www.legislation.gov.uk/ukpga/Vict/45-46/61/part/II/crossheading/discharge-of-bill# Bills of Exchange Act 1882] specifically provided. And note: “''at or after maturity''”. </ref> It might somehow ''vanish''. | ||
Logically, this is true. This is a matter not just of the [[contract|law of contract]], but of common sense. Even if the [[common law|Chancery Division]] contrived to allow it, a basic grip on reality would not. ''You cannot owe yourself [[money]]''. | Logically, this is true. Except for the vanishing bit. This is a matter not just of the [[contract|law of contract]], but of common sense. Even if the [[common law|Chancery Division]] contrived to allow it, a basic grip on reality would not. ''You cannot owe yourself [[money]]''. | ||
But ''so what''? | But ''so what''? | ||