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    Question

    As per the Contract Act where should the payment be

    applied in case the debt to be discharged is indicated by the debtor either with express intimation, or under circumstances implying its application?
    A Be applied in discharge of the debts in order of time Correct Answer Incorrect Answer
    B Be applied to the discharge of some particular debt Correct Answer Incorrect Answer
    C Be applied to any lawful debt actually due and payable to the creditor from the debtor Correct Answer Incorrect Answer
    D Be applied in the discharge of the debts proportionally Correct Answer Incorrect Answer
    E As the creditor and the debtor may mutually agree upon Correct Answer Incorrect Answer

    Solution

    Section 59.   Application of payment where debt to be discharged is indicated: 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.

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