Monday, October 08, 2007

Contract Act_Practical Problems_16

A owes B rupees ten thousand, C, who is a friend of A, pays to B rupees five thousand in full satisfaction of B's claim on A which B accepts. Can B now recover the balance from A? Given reasons.

No. B cannot recover the balance from A. The problem is based on the statutory illustration to Section 63 of the Indian Contract Act, 1872. The Section provides, inter alid, that the promisee may, instead of performance of the promise made to him, accept any satisfaction which he thinks fit. Thus, having accepted payment from C, in full satisfaction of his claim againstA, B ceases to have any rights against A.

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