'X' and 'Y' have jointly taken a loan from 'Z' with promise to repay the same with interest within two…
Z can recover the entire outstanding amount from Y. Under Section 44, releasing one joint promisor does not discharge the others, and Section 43 permits recovery of the…
Choose your answer
'X' and 'Y' have jointly taken a loan from 'Z' with promise to repay the same with interest within two years. The loan is not repaid. 'Z' releases 'X' from liability and institutes a suit for recovery of the entire amount due from 'Y' alone. Under the Indian Contract Act, 1872, 'Z' in law is entitled to recover:
Answer and explanation
Correct answer A
Z can recover the entire outstanding amount from Y. Under Section 44, releasing one joint promisor does not discharge the others, and Section 43 permits recovery of the whole promise from Y. X’s release also does not automatically eliminate his responsibility to the other joint promisor for contribution.
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