Can my personal lender now require I pay the default rate of interest?
Full Question:
Answer:
It would be a matter of interpretation for the court to decide if laches applied, based on the contract terms and the facts and circumstances involved. Laches typically seeks to prevent an injustice due to the prejudice caused by the complaining party's delay.
Generally, the contract terms will govern whether or not a party is required to give notice within a certain time period before exercising a right to accelerate, or whether payments may be due retroactively. Where the terms aren't defined or ambiguous, the court will attempt to
determine the intent of the parties based on prior dealings, trade practices, and other evidence. To determine intent of the parties, the court will look at evidence of
(a) their relationship,
(b) the subject matter of the contract,
(c) facts and circumstances surrounding execution of the contract,
(d) the practical construction the parties themselves have placed on the contract by their acts and deeds and
(e) other external circumstances that cast light on the parties' intent.
When all else fails, an ambiguity in a contract should be construed against the party which drafted the ambiguous language.