This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
The statute of limitations runs against the right to recover money paid by mistake when such payment is made, and not from the time that demand is made.1 Thus if a forged check is paid by mistake, limitations runs from the date of payment.2 Limitations runs against a surety's right to exoneration by his principal3 from the time that he pays the debt and not from the date of the debt. So the right of an indorser to exoneration from the principal debtor,4 or to contribution from joint indorsers,5 begins only when he has paid the debt or more than his share of it, and limitations runs from that time. If in case of conversion the injured party elects to waive the tort and sue in assumpsit, limitations runs from the time that the wrong-doer receives from his vendee the money for which the injured party sues,6 provided that such sale is made and such money is received before the injured party's right of action against the wrong doer has been barred by limitations and title has thus been perfected in the wrong doer.
5 Teasley v. Bradley, 110 Ga. 497; 78 Am. St. Rep. 113; 35 S. E. 782.
6 Landis v. Saxton, 105 Mo. 486; 24 Am. St. Rep. 403; 16 S. W. 912.
7 Teasley v. Bradley, 110 Ga. 497; 78 Am. St. .Rep. 113; 35 S. E. 782.
8 Douglas v. Corry, 46 O. S. 349; 15 Am. St. Rep. 604; 21 N. E. 440.
9 Thorne v. Heard (1894), 1 Ch. 599.
10 In re Somerset (1894), 1 Ch. 231.
11 Barker v. Hurley, 132 Cal. 21; 63 Pac. 1071; Redford v. Clarke, 100 Va. 115; 40 S. E. 630; Beecher v. Foster, 51 W. Va. 605; 42 S. E. 647; Buttles v. De Baun, 116 Wis. 323; 93 N. W. 5.
1 Bree v. Holbech, 2 Doug. 654; Bank of the United States v. Daniel, 12 Pet. (U. S.) 32; Sturgis v. Preston, 134 Mass. 372; Murphy v. Omaha, 1 Neb. (Unofficial) 488; 95 N. W. 680.