There is no presumption that interest payable on a loan made by a private lender is to be calculated as compound interest; the question is purely one of contractual interpretation. Evidence of one bank's practice is insufficient to establish an industry custom supporting implication of a compound interest term. Where a deed of loan is abandoned by both parties as not representing their agreement, its terms cannot be selectively relied upon to support an implied term in the oral agreement.
The full text is available to signed-in members, including the 9 later cases that cite this judgment.
2 of the 9 citing cases carry a classified treatment. How each court treated it is available to signed-in members.