Saturday, October 20, 2007

Contract Act_Practical Problems_48

A, B and C borrow Rs. 10,000 from X. All of them have executed a promissory note in favour of X. A dies. X sues B alone for Rs. 10,000. Is X entitled to do so? If so, what is the remedy, if any, to B ?
Section 43 of the Indian Contract Act, 1872 provides that when two or more persons make a joint promise, the promisee may, in the absence of express agreement to the contrary, compel any one or more of such joint promisors to perform the whole of the promise. Thus, in the given case, X is entitled to claim performance from B alone.

B, of course, in turn, shall be allowed to claim contribution in excess of his share {i.e., 1/3] from C aswell as legal representative of A. In this regard. Section 43 again provides that each of two or more joint promisors may compel every other joint promisor to contribute equally with himself to the performance of the promise, unless a contrary intention appears from the contract. Thus, B shall be entitled to claim Rs. 3,333.33 each from C and A's legal representative.

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