The Indian Contract Act, 1872 Part- II

Question 1

Appropriation Of Payments

Answer 1

Sometimes, a debtors owes severals debts to creditors and makes Payment, which is not sufficient to discharge all the debts. In such cases, the payment is appropriated as per section 59 to 61 of the Indian Contract Act.

1. Application of payment where debt to be discharged is indicated (u/s-59).
2. Application of payment where debt to be discharged is not indicated (u/s- 60).
3. Application of payment where neither party appropriates (u/s-61)