| Commentary

54.2 Interest

| Commentary

54.2 Interest

Under English common law, interest is not due on late payment of a contractual debt unless the parties to the contract have expressly agreed for its payment, or it can be implied from a course of dealing or trade custom. In certain circumstances, interest may be payable under equitable rules, for example, in the case of a mortgage where interest was not mentioned1; however, this will not apply to most commercial contracts.

Before 1998, statutes provided for the payment of interest only in limited situations (for example, on county court judgment debts2). However, legislation now provides for interest to

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