Appropriation of Payments and Performance by Joint Promisors — MCQs

All questions with answers and explanations

Read the full set here, or use the practice card above to test yourself one question at a time.

1. Under Section 59, who has the first right to appropriate a payment to a specific debt?

   • The creditor
   • The debtor (correct answer)
   • The court
   • A neutral arbitrator

   Explanation. Section 59 gives the debtor the first right to direct which debt a payment should be applied to, either expressly or by clear implication.

2. If the debtor does not specify which debt a payment is for, Section 60 allows the creditor to apply it to:

   • Only the most recent debt
   • Any lawful debt actually due, even a time-barred one (correct answer)
   • No debt until the debtor clarifies
   • Only debts under ₹10,000

   Explanation. Section 60 gives the creditor discretion to apply an unspecified payment to any lawful debt, including one barred by the Limitation Act.

3. If neither the debtor nor the creditor appropriates a payment, Section 61 applies it:

   • Proportionately to all debts regardless of age
   • To discharge debts in order of time, earliest first (correct answer)
   • Only to the largest debt
   • To no debt at all

   Explanation. Section 61 applies unappropriated payments to debts in chronological order — the earliest debt is treated as discharged first.

4. Which English case established the "first in, first out" logic that Section 61 mirrors?

   • Taylor v. Caldwell
   • Clayton's Case (Devaynes v. Noble) (correct answer)
   • Hochster v. De La Tour
   • Scarf v. Jardine

   Explanation. Clayton's Case (1816) established the FIFO presumption for running accounts, the same logic later reflected in Section 61.

5. Under Section 42, when two or more persons make a joint promise, who must fulfil it?

   • Any one of them, at their own choice
   • All of them jointly, unless a contrary intention appears (correct answer)
   • Only the eldest promisor
   • Only the promisor named first in the contract

   Explanation. Section 42 requires all joint promisors to jointly fulfil the promise, unless the contract shows a contrary intention.

6. Under Section 43, if one joint promisor pays more than their own share, what right do they get?

   • No right — they simply lose the extra amount
   • A right to claim equal contribution from the other joint promisors (correct answer)
   • A right to cancel the whole contract
   • A right to sue the promisee for a refund

   Explanation. Section 43 gives a joint promisor who pays more than their share the right to claim equal contribution from the other joint promisors.

7. Under Section 44, if the promisee releases one joint promisor from liability, what happens to the others?

   • They are all automatically released too
   • They remain liable to the promisee (correct answer)
   • The contract becomes void
   • They must immediately pay the full amount

   Explanation. Section 44 makes clear that releasing one joint promisor does not discharge the others — they remain liable to the promisee.

8. Section 45 deals with the devolution of joint rights — this is essentially the mirror image of which section?

   • Section 41
   • Section 42 (correct answer)
   • Section 56
   • Section 63

   Explanation. Section 45 mirrors Section 42, but from the promisee's side — covering joint rights to claim performance rather than joint liabilities to perform.