§ 1515 Creditor Refusal Of Performance

This law says that if a creditor says no to being paid before the debtor offers to pay, that refusal counts as both an offer and a refusal, unless the creditor later says he would accept before the payment is due.

Key Takeaways

•A creditor's early refusal is legally treated as both an offer and a refusal.
•The rule only applies if the creditor does not later say he would accept before the payment is due.
•If the creditor stays silent or refuses until the due date, the debtor can treat the debt as paid.

Example

A borrower wants to pay back a loan early, but the lender says "No, I won't take it now."

The lender's early "no" is treated as both an offer to be paid and a refusal. If the lender doesn't change his mind and say he would accept before the payment is actually due, the borrower can consider the debt settled even though the lender originally refused.

Key Takeaways

•A creditor's early refusal is legally treated as both an offer and a refusal.
•The rule only applies if the creditor does not later say he would accept before the payment is due.
•If the creditor stays silent or refuses until the due date, the debtor can treat the debt as paid.

Example

A borrower wants to pay back a loan early, but the lender says "No, I won't take it now."

Key Takeaways

Example

Key Terms

References

§ 1515 Creditor Refusal Of Performance

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References