Instalment bond limitation: acceleration clause made time run from first default, and no waiver was proved.

An instalment bond clause allowing the creditor, on default of one instalment, to sue for the entire balance was treated as an acceleration clause that made limitation run from the first default. The wording that the amount may be sued for did not change that legal effect, and a right to delay suit while claiming interest did not extend the statutory period. No waiver was proved or pleaded, and the payments received were not accepted as payment of overdue instalments. The suit was therefore barred by limitation, and the lower courts' decree was set aside.

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Issues: Whether a suit on an instalment bond, providing that on default of one instalment the entire amount could be sued for, was barred by limitation when the claim was brought after the expiry of time from the first default, and whether there had been any waiver postponing the running of time.

Analysis: The stipulation that the creditor could sue for the whole amount upon default of one instalment was treated as sufficient to make limitation run from the first default. The alternative wording that the amount may be sued for did not alter the legal effect of the acceleration clause. The existence of a right to wait and claim interest did not postpone limitation beyond the statutory period. There was no proof or pleading of any waiver, express or otherwise, and the payments received were not accepted as payment of the overdue instalments.

Conclusion: The suit was barred by limitation and the decree of the lower Courts was set aside.

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