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INTEREST
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INTEREST , etymologically a See also:state or See also:condition of being concerned in or having a See also:share in anything, hence a legal or other claim to or share in See also:property, benefits or advantages. Further developments of meaning are found in the application of the word to the benefits, advantages, matters of importance, &c., in which " interest " or concern can be See also:felt, and to the feeling of concern so excited; hence also the word is used of the persons who have a concern in some See also:common " interest," e.g. the trading or commercial interest, and of the See also:personal or other See also:influence due to a connexion with specific " interests." The word is derived from the Latin interesse (literally " to be betwagn "), to make a difference, to concern, be of importance. The' See also:form which the word takes in See also:English is a substantival use of the 3rd See also:person singular of the See also:present indicative of the Latin verb, and is due to a similar use in See also:French of the older interest, See also:modern inter£:t. The earlier English word was interess, which survived till the end of the 17th See also:century; the earliest example of " interest " in the New English See also:Dictionary is from the Rolls of See also:Parliament of 1450. These meanings of " interest " are plainly derived from the See also:ordinary uses of the Latin interesse. The origin of the application of the word to the See also:compensation paid for the use of See also:money or for the forbearance of a See also:debt, with which, as far as present English See also:law is concerned, this See also:article deals, forms See also:part of the See also:history of See also:USURY and MONEY-LENDING (q.v.). By See also:Roman law, where one party to a See also:contract made See also:default, the other could enforce, over and above the fulfilment of the agreement, compensation based on the difference (id quod interest) to the creditor's position caused by the default of the debtor, which was technically known as See also:mora, delay. This difference could be reckoned according as actual loss had accrued, and also on a calculation of the profit that might have been made had performance been carried out. Now this See also:developed the canonist See also:doctrine of damnum emergens and lucrum cessans respectively, which played a considerable part in the breaking down of the ecclesiastical See also:prohibition of the taking of usury. The See also:medieval lawyers used the phrase See also:damn et interesse (in French dommages et interests) for such compensation by way of See also:damages for the non-fulfilment of a contract, and for damages and See also:indemnity generally. Thus interesse and interest came to be particularly applied to the See also:charge for the use of money disguised by a legal fiction under the form of an indemnity for the failure to perform a contract. At English common law an agreement to pay interest is not implied unless in the See also:case of negotiable See also:instruments, when it is supported by See also:mercantile usage. As a See also:general See also:rule therefore debts certain, payable at a specified See also:time, do not carry interest from that time unless there has been an See also:express agreement that they should do so. But when it has been the See also:constant practice 'Id a See also:trade or business to charge interest, or where as between. the parties interest has been always charged and paid, a contract to pay interest is implied. It is now provided by the See also:Civil See also:Procedure See also:Act 1833 that, " upon all debts or sums certain payable at a certain time or otherwise, the See also:jury on the trial of any issue or in any See also:inquisition of damages may if they shall think See also:fit allow interest to the creditor at a See also:rate not exceeding the current rate of interest, from the time when such debts or sums certain were payable, if such debts or sums be payable by virtue of some written See also:instrument at a certain time; or if payable otherwise, then from the time when demand of See also:payment shall have been made in See also:writing, so as such demand shall give See also:notice to the debtor that interest will be claimed from the date of such demand until the See also:term of payment: provided that interest shall be payable in all cases in which it is now payable by law." See also:Compound interest requires to be supported by See also:positive See also:proof that it was agreed to by the parties; an established practice to See also:account in this manner will be See also:evidence of such an agreement. When interest is awarded by a See also:court it is generally at the rate of 4%; under See also:special circumstances 5% has been allowed. Additional information and CommentsThere are no comments yet for this article.
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