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A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right?
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A received certain goods from B promising to pay 1,00,000. Later on, A...
Legal Analysis of the Situation:
The given scenario presents a complex issue of whether B can sue A for the entire amount of 1,00,000 despite receiving a partial payment of 60,000 from C. The following legal analysis can help in understanding the situation:
Doctrine of Novation:
Novation is a legal concept that applies when a new contract replaces an existing one. In this case, when C paid 60,000 to B on behalf of A, the previous contract between A and B was effectively replaced with a new one. Therefore, B cannot sue A for the entire amount of 1,00,000 as the original contract no longer exists.
Agency Relationship:
It is not clear from the given scenario whether C paid the amount to B as an agent of A or on his own accord. If C paid the amount as an agent of A, then A will be liable to reimburse C for the payment made to B. However, if C paid the amount on his own accord, then A will not be liable for the payment made by C.
Communication of Payment:
The scenario mentions that A was not aware of the payment made by C to B. It is essential to establish whether C communicated the payment to A or not. If C did not communicate the payment to A, then A cannot be held liable for the payment made by C. However, if C communicated the payment to A, then A will be held liable for the remaining amount of 40,000.
Conclusion:
In conclusion, B cannot sue A for the entire amount of 1,00,000 as novation has occurred, and the original contract no longer exists. The liability of A will depend on whether C paid the amount as an agent of A or on his own accord and whether C communicated the payment to A or not.
The given scenario presents a complex issue of whether B can sue A for the entire amount of 1,00,000 despite receiving a partial payment of 60,000 from C. The following legal analysis can help in understanding the situation:
Doctrine of Novation:
Novation is a legal concept that applies when a new contract replaces an existing one. In this case, when C paid 60,000 to B on behalf of A, the previous contract between A and B was effectively replaced with a new one. Therefore, B cannot sue A for the entire amount of 1,00,000 as the original contract no longer exists.
Agency Relationship:
It is not clear from the given scenario whether C paid the amount to B as an agent of A or on his own accord. If C paid the amount as an agent of A, then A will be liable to reimburse C for the payment made to B. However, if C paid the amount on his own accord, then A will not be liable for the payment made by C.
Communication of Payment:
The scenario mentions that A was not aware of the payment made by C to B. It is essential to establish whether C communicated the payment to A or not. If C did not communicate the payment to A, then A cannot be held liable for the payment made by C. However, if C communicated the payment to A, then A will be held liable for the remaining amount of 40,000.
Conclusion:
In conclusion, B cannot sue A for the entire amount of 1,00,000 as novation has occurred, and the original contract no longer exists. The liability of A will depend on whether C paid the amount as an agent of A or on his own accord and whether C communicated the payment to A or not.
Community Answer
A received certain goods from B promising to pay 1,00,000. Later on, A...
When a promisee accepts
performance of the promise from a third person, he cannot afterwards enforce it
against the promisor. That is, performance by a stranger, accepted by the promisee,
produces the result of discharging the promisor, although the latter has neither
authorized nor ratified the act of the third party. Therefore, in the present instance,
B can sue only for the balance amount i.e. ` 40,000 and not for the whole amou
performance of the promise from a third person, he cannot afterwards enforce it
against the promisor. That is, performance by a stranger, accepted by the promisee,
produces the result of discharging the promisor, although the latter has neither
authorized nor ratified the act of the third party. Therefore, in the present instance,
B can sue only for the balance amount i.e. ` 40,000 and not for the whole amou
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A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right?
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A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right?.
A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right?.
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A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right?, a detailed solution for A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right? has been provided alongside types of A received certain goods from B promising to pay 1,00,000. Later on, A expressed his inability to make payment. C, who is known to A, pays 60,000 to B on behalf of A. However, A was not aware of the payment. Now B is intending to sue A for the amount of 1 Discuss whether the contention of B is right? theory, EduRev gives you an
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