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    Question

    Where should the payment be applied in case the debt to be discharged is not indicated as per the provisions laid down under the Contract Act?

    A Be applied to the discharge of some particular debt Correct Answer Incorrect Answer
    B Debtor may apply it at his discretion to any lawful debt actually due and payable by him to the debtor Correct Answer Incorrect Answer
    C Creditor may apply it at his discretion to any lawful debt actually due and payable to him from the debtor Correct Answer Incorrect Answer
    D Either of the parties may decide the application of the debt to any lawful debt actually due and payable Correct Answer Incorrect Answer

    Solution

    Contract Act Section 60. Application of payment where debt to be discharged is not indicated: Where the debtor has omitted to intimate and there are no other circumstances indicating to which debt the payment is to be applied, the creditor may apply it at his discretion to any lawful debt actually due and payable to him from the debtor, whether its recovery is or is not barred by the law in force for the time being as to the limitation of suits

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