QUESTION
Can a judgement be set aside for this reason?
Asked on Feb 03rd, 2016 on Contracts - Oklahoma
More details to this question:
I had a simple YP ad that was initially $85 per year. There were two books in my area at the time and I had ads in both. I paid the one and forgot about the other. When repeatedly contacted by the A/R perosnnel, I informed them that I had paid it. They were the ones I forgot about and so I was sued in SMC for $285 which included interest. How can a Non-loan entity charge (and be awarded) interest when no mention is made in writing?
1 ANSWER
The particulars vary by jurisdiction, but interest is generally awarded on any set amount of a debt as a direct and forseeable element of damage. The idea is that if you hadn't breached the contract, but had paid the money on time, the plaintiff could have invested the money. At the least, the plaintiff could have put the money in a CD and earned interest on it. The ability to use the money is worth something; receiving $1000 today is worth more than receiving $1,000 in 3 years. Because it's so difficult to calculate the exact interest amount which was lost, the interest rates recoverable are generally set by statute. For example, in NY it's 9%.
Answered on Feb 04th, 2016 at 10:54 AM