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Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872?
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Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2...
Appropriation of Payments under the Indian Contract Act, 1872
Introduction
The Indian Contract Act, 1872 governs the rules and regulations regarding contracts in India. One important aspect of contract law is the appropriation of payments. Appropriation of payments refers to the allocation of a payment towards a particular debt or liability. In the given scenario, Mr. Murari owes three bills to Mr. Girdhari, and he made two payments without any specific instructions regarding their appropriation.
Rules of Appropriation of Payments
The Indian Contract Act, 1872 provides certain rules regarding the appropriation of payments when there is no specific instruction given by the debtor. These rules are as follows:
1. Order of Appropriation: In the absence of any specific instruction, the payment made by the debtor is applied in the following order:
a. Towards payment of interest, if any, due on the debt.
b. Towards the principal amount of the debt.
2. Oldest Debt First: If there are multiple debts, the payment is appropriated towards the oldest debt first. In this case, the payment made by Mr. Murari will be first applied towards the bill due in May 2016.
3. Proportional Payment: If the debts are of the same date, the payment is proportionally allocated to each debt. For example, if Mr. Murari had two bills due on May 2019, the payment would be divided equally between them.
Appropriation of Mr. Murari's Payments
Applying the rules of appropriation to Mr. Murari's payments, we can determine how they will be allocated:
1. Payment of Rs 9,680: This payment will be first appropriated towards the oldest debt, which is the bill due in May 2016. Since the payment amount is equal to the outstanding amount of this bill, it will be fully settled.
2. Remaining Payment of Rs 15,000: As per the rules of appropriation, this payment will be allocated towards the remaining debts in the order of their age. It will be first applied towards the bill due in August 2018, and the remaining amount will be allocated towards the bill due in May 2019.
Conclusion
In conclusion, under the Indian Contract Act, 1872, the appropriation of payments is determined by the order of debts and their age. In the given scenario, Mr. Murari's payment of Rs 9,680 is allocated towards the oldest debt, while the remaining payment of Rs 15,000 is appropriated towards the other debts according to their age. It is important for debtors and creditors to understand these rules to ensure fair and appropriate allocation of payments.
Introduction
The Indian Contract Act, 1872 governs the rules and regulations regarding contracts in India. One important aspect of contract law is the appropriation of payments. Appropriation of payments refers to the allocation of a payment towards a particular debt or liability. In the given scenario, Mr. Murari owes three bills to Mr. Girdhari, and he made two payments without any specific instructions regarding their appropriation.
Rules of Appropriation of Payments
The Indian Contract Act, 1872 provides certain rules regarding the appropriation of payments when there is no specific instruction given by the debtor. These rules are as follows:
1. Order of Appropriation: In the absence of any specific instruction, the payment made by the debtor is applied in the following order:
a. Towards payment of interest, if any, due on the debt.
b. Towards the principal amount of the debt.
2. Oldest Debt First: If there are multiple debts, the payment is appropriated towards the oldest debt first. In this case, the payment made by Mr. Murari will be first applied towards the bill due in May 2016.
3. Proportional Payment: If the debts are of the same date, the payment is proportionally allocated to each debt. For example, if Mr. Murari had two bills due on May 2019, the payment would be divided equally between them.
Appropriation of Mr. Murari's Payments
Applying the rules of appropriation to Mr. Murari's payments, we can determine how they will be allocated:
1. Payment of Rs 9,680: This payment will be first appropriated towards the oldest debt, which is the bill due in May 2016. Since the payment amount is equal to the outstanding amount of this bill, it will be fully settled.
2. Remaining Payment of Rs 15,000: As per the rules of appropriation, this payment will be allocated towards the remaining debts in the order of their age. It will be first applied towards the bill due in August 2018, and the remaining amount will be allocated towards the bill due in May 2019.
Conclusion
In conclusion, under the Indian Contract Act, 1872, the appropriation of payments is determined by the order of debts and their age. In the given scenario, Mr. Murari's payment of Rs 9,680 is allocated towards the oldest debt, while the remaining payment of Rs 15,000 is appropriated towards the other debts according to their age. It is important for debtors and creditors to understand these rules to ensure fair and appropriate allocation of payments.
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Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872?
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Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872? 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 Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872?.
Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872? 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 Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872?.
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Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872?, a detailed solution for Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872? has been provided alongside types of Mr. Murari owes payment of 3 bills to Mr. Girdhari as on 31st March, 2020. (1) Rs 12,120 which was due in May 2016 (1) Rs 5,650 which was due in August 2018 () Rs 9,680 which was due in May 2019 Mr Murari made payment on 1st April 2020 as below without any notice of how to appropriate them A cheque of Rs 9,680. A cheque of Rs 15,000 Advice under the provisions of the indian Contract Act, 1872? theory, EduRev gives you an
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