A contracts with B to pay him Rs. 100 monthly for the benefit of C. B writes and signs a letter…
Section 61 lets a beneficiary compel his trustee "to perform any particular act of his duty". Illustration (a) to section 61 holds that C "may compel B on a proper indemnity…
Choose your answer
A contracts with B to pay him Rs. 100 monthly for the benefit of C. B writes and signs a letter declaring that he will hold the money in trust for C. A fails to pay. Under the Indian Trusts Act, 1882, what is C's remedy?
Answer and explanation
Correct answer B
Section 61 lets a beneficiary compel his trustee "to perform any particular act of his duty". Illustration (a) to section 61 holds that C "may compel B on a proper indemnity to allow C to sue on the contract in B's name". The contract is between A and B, so C sues through B rather than in his own name, and B is not personally liable for A's default.