A bequeaths to B "the debt which C owes me". In A's lifetime, C pays off the whole debt to A, though A…
Illustration (i) to section 154 holds that where the debts are extinguished in A's lifetime, "some with and some without his consent", "All the legacies are adeemed". Under…
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A bequeaths to B "the debt which C owes me". In A's lifetime, C pays off the whole debt to A, though A had not asked for payment. A dies. What is B's position?
Answer and explanation
Correct answer B
Illustration (i) to section 154 holds that where the debts are extinguished in A's lifetime, "some with and some without his consent", "All the legacies are adeemed". Under section 154, where the thing specifically bequeathed is the right to receive something from a third party and the testator himself receives it, the bequest is adeemed. Keeping the money apart matters only under section 162, where the gift is of the sum to be received rather than of the right.