Clayton's principle is related to which of the following concepts of the Contract Act ?
Clayton’s principle concerns appropriation of payments: deciding which debt a payment discharges. Sections 59–61 govern the debtor’s directions, the creditor’s choice when…
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Clayton's principle is related to which of the following concepts of the Contract Act ?
Answer and explanation
Correct answer A
Clayton’s principle concerns appropriation of payments: deciding which debt a payment discharges. Sections 59–61 govern the debtor’s directions, the creditor’s choice when no direction is given, and the statutory order when neither appropriates. It does not concern reciprocal performance, capacity or void agreements.
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