Indian Contract Act,1872

Act No : 9

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Section : Application of payment where debt to be discharged isindicated

59.Application of payment where debt to be discharged isindicated.-Where a debtor, owing several distinct debts to one person,makes a payment to him, either with express intimation, or undercircumstances implying that the payment is to be applied to thedischarge of some particular debt, the payment, if accepted, must beapplied accordingly. Illustrations (a) A owes B, among other debts, 1,000 rupees upon a promissorynote which falls due on the' first June. He owes B no other debt ofthat amount. On the first June A pays to B 1,000 rupees. The paymentis to be applied to the discharge of the promissory note. (b) A owes to B, among other debts, the sum of 567 rupees. Bwrites 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 Bhad demanded payment.

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