CA Foundation Exam > CA Foundation Questions > . X, Y and Z jointly borrowed Rs. 50,000 from...
Start Learning for Free
. X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent?
Most Upvoted Answer
. X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was r...
Y's right to recover contribution from X and Z:
According to the Indian Contract Act, 1872, a joint borrower is liable to repay the entire debt jointly with the other co-borrowers. In this case, X, Y, and Z jointly borrowed Rs. 50,000 from A. However, the whole amount was repaid to A by Y alone.
In such a situation, Y has the right to recover the contribution from X and Z. The principle of joint liability applies, which means that each borrower is equally responsible for the repayment of the entire debt. Since Y has already repaid the entire amount, X and Z are legally bound to reimburse Y for their respective shares.
Liability of X's legal representatives:
In the event of X's death, his legal representatives are liable for the debt. According to Section 37 of the Indian Contract Act, 1872, the liability of a deceased person's legal representatives extends to the extent of the assets inherited by them. Therefore, if X passes away, his legal representatives are responsible for repaying his share of the debt to Y and A.
Y's right to recover contribution from Z's assets in case of insolvency:
If Z becomes insolvent, Y can still recover the contribution from Z's assets. The insolvency of a co-borrower does not absolve them from their liability to repay the debt. Section 128 of the Indian Contract Act, 1872 states that when two or more persons are jointly liable for a debt and one of them becomes insolvent, the other co-debtors will have to bear the whole burden of repayment.
In this case, since X and Y are jointly liable for the debt and Z becomes insolvent, Y can recover Z's share of the debt from Z's assets. Y can approach the insolvency court or take legal action to recover the amount owed by Z.
In conclusion, Y has the right to recover the contribution from X and Z, X's legal representatives are liable for the debt in case of his death, and Y can recover the contribution from Z's assets if Z becomes insolvent. These rights and liabilities are governed by the Indian Contract Act, 1872.
According to the Indian Contract Act, 1872, a joint borrower is liable to repay the entire debt jointly with the other co-borrowers. In this case, X, Y, and Z jointly borrowed Rs. 50,000 from A. However, the whole amount was repaid to A by Y alone.
In such a situation, Y has the right to recover the contribution from X and Z. The principle of joint liability applies, which means that each borrower is equally responsible for the repayment of the entire debt. Since Y has already repaid the entire amount, X and Z are legally bound to reimburse Y for their respective shares.
Liability of X's legal representatives:
In the event of X's death, his legal representatives are liable for the debt. According to Section 37 of the Indian Contract Act, 1872, the liability of a deceased person's legal representatives extends to the extent of the assets inherited by them. Therefore, if X passes away, his legal representatives are responsible for repaying his share of the debt to Y and A.
Y's right to recover contribution from Z's assets in case of insolvency:
If Z becomes insolvent, Y can still recover the contribution from Z's assets. The insolvency of a co-borrower does not absolve them from their liability to repay the debt. Section 128 of the Indian Contract Act, 1872 states that when two or more persons are jointly liable for a debt and one of them becomes insolvent, the other co-debtors will have to bear the whole burden of repayment.
In this case, since X and Y are jointly liable for the debt and Z becomes insolvent, Y can recover Z's share of the debt from Z's assets. Y can approach the insolvency court or take legal action to recover the amount owed by Z.
In conclusion, Y has the right to recover the contribution from X and Z, X's legal representatives are liable for the debt in case of his death, and Y can recover the contribution from Z's assets if Z becomes insolvent. These rights and liabilities are governed by the Indian Contract Act, 1872.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
. X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent?
Question Description
. X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent? 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 . X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent?.
. X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent? 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 . X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent?.
Solutions for . X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of . X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent? defined & explained in the simplest way possible. Besides giving the explanation of
. X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent?, a detailed solution for . X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent? has been provided alongside types of . X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent? theory, EduRev gives you an
ample number of questions to practice . X, Y and Z jointly borrowed Rs. 50,000 from A The whole amount was repaid to A by Y. Decide in the light of the Indian Contract Act, 1872 whether! 0) Y can recover the contribution from X and Z. (ii) Legal representatives of X are liable in case of death of X. (iii) Y can recover the contribution from the assets, in case Z becomes insolvent? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup