A owed B ₹10,000. After the limitation period for recovering the debt expires, A signs a written…
The written and signed promise to pay ₹8,000 is enforceable under section 25(3) of the Indian Contract Act, 1872. The section covers all or part of a debt that the creditor…
Choose your answer
A owed B ₹10,000. After the limitation period for recovering the debt expires, A signs a written promise to pay B ₹8,000 of it. Is the new promise enforceable?
Answer and explanation
Correct answer B
The written and signed promise to pay ₹8,000 is enforceable under section 25(3) of the Indian Contract Act, 1872. The section covers all or part of a debt that the creditor could have enforced but for limitation.
Section 18 of the Limitation Act, 1963, requires acknowledgment before expiry to start a fresh limitation period. The new contract here rests on the promise itself.
Option feedback
Option A
Limitation bars a claim on the original debt. The signed promise can itself form an enforceable contract.
Option B
Section 25(3) expressly permits a signed promise to pay part of a debt barred only by limitation.
Option C
An acknowledgment under section 18 must be made before the applicable period expires. A fresh signed promise under section 25(3) works on a different basis.
Option D
Section 25(3) expressly covers a promise to pay the debt in whole or in part.
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