1. MUTUAL AND INDEPENDENT— Where each party has got a duty to discharge his obligation without waiting for the other party. It has to be performed in order fixed by them as per the terms of the Contract.
2. MUTUAL AND DEPENDENT —One promise is dependent upon other promise. The duty of the promisor upon whose promise the other is dependent to perform his part first. If he fails the other party can treat the Contract as end and sue him for damages.
EXAMPLE: ‘A’ promises to construct a house and ‘B’ promised to supply the goods. If ‘B’ breaches the Contract by not supplying the goods ‘A’ can treat the Contract as an end and can sue ‘B’.
3. MUTUAL AND CONCURRENT —- When the Contract consists of Reciprocal promises to be simultaneously performed. No, promisor is need to perform his promise unless the other is ready and willing to perform his part.
SECTION 59 TO 61 — LAW RELATING TO APPROPRIATION OF PAYMENT MADE BY DEBTOR TO CREDITOR :-
If the debtor owes several debts from the same creditor.
EXAMPLE— ‘A’ debts from some Creditors on
And ‘A’ sent 1,000/- to Creditor. This rule is explained under SECTION 59 TO 61.
At the option of debtor— If the debtor expressly intimate to the creditor, that this payment should be applied towards a discharge of particular debt. ( EXPRESS INSTRUCTION).
If there is no express intimation but circumstances shows the intention of the debtor. Debtor’s intention must be followed.
No Express or Implied intimidation by the debtor, then creditor may apply to any lawful debt. Including time barred debt. But, not to disputed debt.
When neither the creditor nor the debtor appropriate the payment it shall be applied in discharge of debt including time barred in order of time.
In case of debt carries interest, payment must be better first applied towards interest and balance to principal amount.
M. BHAGABAI. AIR(1970) SC 161.
It was pointed out, the normal rule in case of debt due with interest is that payment made by the debtor is in the first instance to be applied towards satisfaction of interest and thereafter to the Principal Amount.
Bonjour! My name is Kaumudi. I'm a constant learner.One of my hobbies is going out with friends. I enjoy listening to music and reading. And I Love my Granny a lot. She's the inspiration to create this blog and share my knowledge with you all.