New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    How should a payment be applied when neither party

    specifies the appropriation?
    A To the most recent debt Correct Answer Incorrect Answer
    B To the highest value debt Correct Answer Incorrect Answer
    C Proportionally to each debt Correct Answer Incorrect Answer
    D To the oldest debt, regardless of the limitation period Correct Answer Incorrect Answer
    E Equally to debts within the limitation period Correct Answer Incorrect Answer

    Solution

    Explanation: Contract Act 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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