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?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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