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A debtor makes and signs a written promise to pay part of a debt that the creditor could have enforced…

Section 25(3) makes a signed written promise to pay all or part of an otherwise enforceable debt a contract when limitation alone bars recovery of the original debt. The…

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A debtor makes and signs a written promise to pay part of a debt that the creditor could have enforced but for the law of limitation. What is the effect under section 25(3) of the Indian Contract Act, 1872?

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Answer and explanation

Correct answer C

Section 25(3) makes a signed written promise to pay all or part of an otherwise enforceable debt a contract when limitation alone bars recovery of the original debt.

The signature can be that of the debtor or of an agent generally or specially authorised for that purpose.

Option feedback

Option A

Section 25(3) gives effect to a qualifying promise even though the old claim is barred by limitation.

Option B

Subsection (3) requires writing and signature. The registration condition in subsection (1) is a separate exception.

Option C

The signed written promise to pay part of an otherwise recoverable debt meets subsection (3).

Option D

Section 25(3) expressly covers a promise to pay the debt in whole or in part.

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