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    Question

    Where should the payment be applied in case neither

    party appropriates the application of the debt as provide under the Contract Act?
    A Be applied to the discharge of some particular debt Correct Answer Incorrect Answer
    B Be applied in discharge of the debts in order of time Correct Answer Incorrect Answer
    C If the debts are of equal standing, the payment be applied proportionally Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer
    E Either a or c Correct Answer Incorrect Answer

    Solution

    Section 61. Application of payment where neither party appropriates: Where neither party makes any appropriation, the payment shall be applied in discharge of the debts in order of time, whether they are or are not barred by the law in force for the time being as to the limitation of suits. If the debts are of equal standing, the payment shall be applied in discharge of each proportionally.

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