A bequeaths to B 1,000 rupees, being part of a debt due to him from W, and to C 1,000 rupees to be paid…
The Illustration to section 151 holds that 1,000 rupees belong to B and 500 rupees go to C, and "C is also to receive 500 rupees out of the general assets of the testator".…
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A bequeaths to B 1,000 rupees, being part of a debt due to him from W, and to C 1,000 rupees to be paid out of the debt due from W. At A's death, W owes only 1,500 rupees. How are B and C paid?
Answer and explanation
Correct answer C
The Illustration to section 151 holds that 1,000 rupees belong to B and 500 rupees go to C, and "C is also to receive 500 rupees out of the general assets of the testator". Section 151 pays the specific portion first and the demonstrative legacy out of the residue of the fund. The shortfall of a demonstrative legacy is met from the general assets, so C is not cut down to 500 rupees.