The term subsisting demand refers to an existing debt that is currently owed. It indicates that there is an obligation that has not been fulfilled, and the creditor has the right to seek repayment. The phrase is rooted in legal terminology and is considered somewhat outdated, but it remains relevant in specific legal contexts, particularly in relation to promissory notes and similar financial instruments.
In legal practice, subsisting demand is primarily used in the context of debt collection and financial agreements. It is often referenced in cases involving promissory notes, bills of exchange, and other instruments that signify a monetary obligation. Understanding this term is essential for individuals and businesses involved in lending or borrowing, as it helps clarify the rights of creditors in pursuing debts.
Here are a couple of examples of abatement:
Example 1: A business issues a promissory note to a supplier for goods received. The amount owed represents a subsisting demand until it is paid off.
Example 2: An individual borrows money from a friend and signs a written agreement acknowledging the debt. This agreement creates a subsisting demand for repayment. (hypothetical example)
The term subsisting demand is referenced in Delaware law, specifically in:
10 Del. C. § 8109 (2009) - This statute outlines the timeframe for initiating legal action related to promissory notes and similar instruments, stating that such actions can be commenced within six years from the date the cause of action accrues.
| Term | Definition | Difference |
|---|---|---|
| Outstanding Debt | A debt that has not been paid and is still owed. | All subsisting demands are outstanding debts, but not all outstanding debts are categorized as subsisting demands. |
| Accrued Interest | Interest that has accumulated on a debt over time. | Accrued interest is a component of a subsisting demand but does not encompass the entire obligation. |
If you find yourself in a situation involving a subsisting demand, consider the following steps:
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A subsisting demand is an existing debt that is currently owed and can be legally pursued for repayment.