CAF-4 · Chapter 9 · Question 8 of 12
Azam owes Babar Rs. 5,000. Azam pays Babar, and Babar accepts, in satisfaction of the whole debt, Rs. 2,000 paid at the time and place at which the Rs. 5,000 were payable. The whole debt is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Discharged.
Explanation
Under Section 63 (Remission), a promisee can accept a smaller sum in full satisfaction of a larger debt, and the debt is discharged.
More Discharge of a contract MCQs
- Q10If a contract is broken by the promisor, the promisee may:
- Q11Which of the following is NOT a ground for 'frustration' (impossibility) of contract?
- Q12Rescission of a contract means:
- Q1If the performance of an act becomes impossible after the contract is made, by reason of some event which the promisor could not prevent…
- Q2If the parties to a contract agree to substitute a new contract for it, or to rescind it, or alter it, the original contract: