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To claim reimbursement of money paid on behalf of another person, which of the following is not required?
- a)Payment must be made to a third party to whom the another party was liable
- b)Payment must be voluntary
- c)There should be some legal or other coercive process compelling the payment
- d)Original liability should be of another person
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
To claim reimbursement of money paid on behalf of another person, whic...
The VPD is an affirmative defense available in specific situations in which a payment is voluntarily made under a mistake of law. Simply, the VPD requires an engaged consumer: “The 'voluntary' in the voluntary payment doctrine does not entail the mere payment of the bill or fee.
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To claim reimbursement of money paid on behalf of another person, whic...
Requirement for Reimbursement of Money Paid on Behalf of Another Person
When someone pays money on behalf of another person, they may be entitled to claim reimbursement. However, there are certain requirements that must be met in order to make a successful claim. The options given in the question are:
a) Payment must be made to a third party to whom the another party was liable
b) Payment must be voluntary
c) There should be some legal or other coercive process compelling the payment
d) Original liability should be of another person
Out of these options, the correct answer is option 'B', which means that payment must be voluntary.
Explanation
Let's understand each option in detail:
a) Payment must be made to a third party to whom the another party was liable: This means that the payment should have been made to a person or entity who was owed the money by the person on whose behalf the payment was made. For example, if A owes money to B and C pays the amount on behalf of A to B, then C can claim reimbursement from A.
b) Payment must be voluntary: This option is incorrect as payment does not have to be voluntary. In fact, if someone pays on behalf of another person under duress or threat, they may still be entitled to claim reimbursement.
c) There should be some legal or other coercive process compelling the payment: This means that the payment should have been made under some sort of legal or other coercive process, such as a court order or a demand from a government agency. In such cases, the person who made the payment may be entitled to claim reimbursement.
d) Original liability should be of another person: This means that the person who made the payment should not be the one who was originally liable for the debt. For example, if A owes money to B and A pays the amount himself, he cannot claim reimbursement.
Conclusion
To claim reimbursement of money paid on behalf of another person, the payment should have been made to a third party to whom the another party was liable, there should be some legal or other coercive process compelling the payment, and the original liability should be of another person. However, payment does not have to be voluntary.
When someone pays money on behalf of another person, they may be entitled to claim reimbursement. However, there are certain requirements that must be met in order to make a successful claim. The options given in the question are:
a) Payment must be made to a third party to whom the another party was liable
b) Payment must be voluntary
c) There should be some legal or other coercive process compelling the payment
d) Original liability should be of another person
Out of these options, the correct answer is option 'B', which means that payment must be voluntary.
Explanation
Let's understand each option in detail:
a) Payment must be made to a third party to whom the another party was liable: This means that the payment should have been made to a person or entity who was owed the money by the person on whose behalf the payment was made. For example, if A owes money to B and C pays the amount on behalf of A to B, then C can claim reimbursement from A.
b) Payment must be voluntary: This option is incorrect as payment does not have to be voluntary. In fact, if someone pays on behalf of another person under duress or threat, they may still be entitled to claim reimbursement.
c) There should be some legal or other coercive process compelling the payment: This means that the payment should have been made under some sort of legal or other coercive process, such as a court order or a demand from a government agency. In such cases, the person who made the payment may be entitled to claim reimbursement.
d) Original liability should be of another person: This means that the person who made the payment should not be the one who was originally liable for the debt. For example, if A owes money to B and A pays the amount himself, he cannot claim reimbursement.
Conclusion
To claim reimbursement of money paid on behalf of another person, the payment should have been made to a third party to whom the another party was liable, there should be some legal or other coercive process compelling the payment, and the original liability should be of another person. However, payment does not have to be voluntary.
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To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer?
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To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer?.
To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer?.
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To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of To claim reimbursement of money paid on behalf of another person, which of the following is not required?a)Payment must be made to a third party to whom the another party was liableb)Payment must be voluntaryc)There should be some legal or other coercive process compelling the paymentd)Original liability should be of another personCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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