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A owes B, among other debts, the sum of 567 rupees. B writes to A and demands payment of this sum. A…

Illustration (b) to section 59: the payment is applied to the debt of which B had demanded payment. Sending the exact sum after B's demand implies that A means to pay that…

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A owes B, among other debts, the sum of 567 rupees. B writes to A and demands payment of this sum. A sends B 567 rupees. To which debt must the payment be applied?

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Answer and explanation

Correct answer A

Illustration (b) to section 59: the payment is applied to the debt of which B had demanded payment. Sending the exact sum after B's demand implies that A means to pay that debt, and under section 59 an accepted payment "must be applied accordingly". B may apply a payment "at his discretion" under section 60 only when nothing shows which debt the debtor meant to pay.

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