search this site - type your query and submit

Daily Email Newsletter (Sign-up Free)

Section 59, Contract Act 1872: Application Of Payment Where Debt To Be Discharged Is Indicated

Section 59 under the Chapter IV (Of the performance of contracts, Contracts which must be performed) of the Contract Act, 1872 of India - 'Application of payment where debt to be discharged is indicated', is reproduced hereunder:—

“Where a debtor, owing several distinct debts to one person, makes a payment to him, either with express intimation, or under circumstances implying that the payment is to be applied to the discharge of some particular debt, the payment, if accepted, must be applied accordingly.

Illustrations

(a) A owes B, among other debts, 1,000 rupees upon a promissory note, which falls due on the first June. He owes B no other debt of the amount. On the first June, A pays to B 1,000 rupees. The payment is to be applied to the discharge of the promissory note.

(b) A owes to B, among other debts, the sum of 567 rupees. B writes to A and demands payment of this sum. A sends to B 567 rupees. This payment is to be applied to the discharge of the debt of which B had demanded payment.”

No comments:

Post a Comment

In comment with "Name/Url" option, only Name is mandatory to be filled.