A owes B ₹10,000. C, a third party, pays B ₹8,000 in full satisfaction of A's debt, which B accepts. B later sues A for the remaining balance of ₹2,000. Will B succeed?

Answer and explanation

Correct answer: C. No, accepting third-party performance bars enforcement against the promisor (Section 41)

  1. Step 1: Examine Section 41 of the Indian Contract Act, 1872 regarding performance of promises by third parties.
  2. Step 2: Section 41 explicitly states: "When a promisee accepts performance of the promise from a third person, he cannot afterwards enforce it against the promisor."
  3. Step 3: Because agreed to accept ₹ from third party in full satisfaction of the claim against , 's right of action against original debtor is completely discharged, precluding any recovery of the ₹ balance.
Answer
No, under Section 41, when a promisee accepts performance of a promise from a third person, he cannot afterwards enforce it against the promisor.

Practise more Indian Contract Act 1872: Essentials and Contingent Contracts.

Free questions with an explanation for every one, and full timed CA Foundation mock tests.