State the law governing the appropriation of payments according to inidian contract act
Answers
Explanation:
Where neither party makes any appropriation, the payment shallbe applied in discharge of the debts in order of time, whetherthey are or are not barred by the law in force for the time beingas to the limitation of suits. If the debts are of equal standing,the payment shall be applied in discharge of each
Where neither party makes any appropriation, the payment shallbe applied in discharge of the debts in order of time, whetherthey are or are not barred by the law in force for the time beingas to the limitation of suits. If the debts are of equal standing,the payment shall be applied in discharge of eachproportionately
Answer:
Sections 59 to 61, of the Contract Act, embody the general rules as to appropriation of payments in cases where debtor owes several distinct debts to one person and voluntarily makes payments to him. It was observed that “When money is paid, it is applied according to the express will of the payer and not the receiver.