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A owes B ₹1,000, recovery of which is barred only by limitation. A signs a written promise to pay B…

Section 25(3) recognises a written promise signed by the person to be charged, or an authorised agent, to pay all or part of a debt enforceable but for limitation.…

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A owes B ₹1,000, recovery of which is barred only by limitation. A signs a written promise to pay B ₹500 on account of that debt. What is the effect under the Indian Contract Act, 1872?

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Answer and explanation

Correct answer B

Section 25(3) recognises a written promise signed by the person to be charged, or an authorised agent, to pay all or part of a debt enforceable but for limitation. Illustration(e) uses this ₹1,000 debt and ₹500 promise and declares it a contract.

Option feedback

Option A

Section 25(3) supplies the applicable exception.

Option B

The written signed promise to pay part of the barred debt is enforceable for that part.

Option C

Section 25(3) requires writing and signature, not registration.

Option D

The promise is for ₹500, not the whole debt.

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