Receipt

Receipt is the technical as well as popular term signifying a legal acknowledgment of money received in discharge of a debt or demand. In England it is often believed that a written receipt is the only legal proof of payment: the fact being that it is only one mode of proving it. If the money be paid in presence of witnesses, or even without witnesses, provided a jury or judge believe the statement on oath of the party paying it, this is in England quite as good evidence of the payment as if a written receipt were given; and even a written receipt is conclusive only where it is under seal, or endorsed on a conveyance under the Conveyancing Act of 1881, unless the purchaser had notice to the contrary, or on a marine policy between assured and underwriter. In other cases a receipt is only prima facie evidence, and may be explained. If a receipt is in writing and the sum paid exceeds 40s. it must be stamped with a penny receipt-stamp (which may be an adhesive stamp), to be cancelled before delivery, otherwise the receipt is inadmissible as evidence of payment; but on payment of certain penalties the receipt may be after-stamped with an impressed stamp. Not only is a receipt proper subject to stamp-duty, but also any note or memorandum given to a person on payment of money, and acknowledging payment of any part of a debt or demand, whether signed or not; so receipts given on payment of bills of exchange or promissory-notes are liable to stamp-duty. But a mere acknowledgment of indebtedness, as a receipt 'on loan,' or an I O U, is not stampable as a receipt. There are several exceptions from liability to stamp-duty. Such are receipts for deposits with bankers to be accounted for; receipts for any parliamentary taxes or duties, or for any payment to the Sovereign; receipts by officers, seamen, marines, or soldiers for wages or pay; receipts for purchase of government stock or for money due under Exchequer Bill; receipts written on any bill or note of the Bank of England or of Ireland, on the back of duly stamped bills of exchange or promissory-notes, or upon the back of duly stamped instruments acknowledging the receipt of money; and generally receipts to or by government departments. At one time, under the Act of 1803, it was supposed to be the duty of the debtor to provide stamped paper for a receipt, the creditor being liable in a penalty of £10 if he refused to sign. This act, however, is repealed, and the better view is that when the debtor tenders payment the creditor is bound to give a proper discharge, the form of the discharge being regulated by custom. In Scotland the receipt of money cannot be proved by witnesses where the debt was created by writing, and it is not allowed to dispute the validity of a written receipt except in cases of fraud. It is only in the case of ready-money sales that receipt of the price can be proved by parole. See Tilsley's Stamp Laws (3d ed. 1871).