CAF-4 · Chapter 8 · Question 11 of 12
If a debtor owes several distinct debts to one person and makes a payment with an instruction to apply it to a specific debt, the payment must be applied:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To the specific debt indicated by the debtor.
Explanation
Section 59 (Appropriation of Payments) requires the creditor to follow the debtor's express instruction.
More Performance of contract MCQs
- Q1When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may:
- Q2If it appears from the nature of the case that it was the intention of the parties that the promise should be performed by the promisor…
- Q3When two or more persons have made a 'joint promise', then, unless a contrary intention appears, the liability to perform the promise…
- Q4The promisee may compel __________ of the joint promisors to perform the whole of the promise.
- Q5If one of the joint promisors is compelled to perform the whole promise, he may require a 'contribution' from: