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A creditor could have enforced a debt but for the law of limitation. The debtor then signs a written…

Section 25(3) makes a promise to pay a time-barred debt enforceable to the extent promised if it is in writing and signed by the person to be charged or an authorized agent.…

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A creditor could have enforced a debt but for the law of limitation. The debtor then signs a written promise to pay the creditor half the debt. Under section 25(3) of the Indian Contract Act, 1872, what is the effect of the promise?

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Answer and explanation

Correct answer C

Section 25(3) makes a promise to pay a time-barred debt enforceable to the extent promised if it is in writing and signed by the person to be charged or an authorized agent. A promise to pay part of the debt qualifies.

Option feedback

Option A

Section 25(3) makes a qualifying signed promise enforceable even though limitation bars the original debt claim.

Option B

Section 25(3) provides an exception to the ordinary requirement of consideration.

Option C

The written promise was signed by the debtor and covers part of a debt enforceable but for limitation.

Option D

Section 25(3) expressly permits a promise to pay part of the debt.

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