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1The Contract Act, 1872

( ACT NO. IX OF 1872 )

Chapter IV

OF THE PERFORMANCE OF CONTRACTS

Appropriation of Payments

Application of payment, where debt to be discharged is indicated
59. Where a debtor, owing several distinct debts to one person, makes a payment to him, either with express intimation, or under circumstances implying that the payment is to be applied to the discharge of some particular debt, the payment, if accepted, must be applied accordingly.
 
 
 
 
Illustrations
 
 
 
 
(a) A owes B, among other debts, 1,000 Taka upon a promissory note which falls due on the first June. He owes B no other debt of that amount. On the first June A pays to B 1,000 Taka. The payment is to be applied to the discharge of the promissory note.
 
 
 
 
(b) A owes to B, among other debts the sum of 567 Taka. B writes to A and demands payment of this sum. A sends to B 567 Taka. This payment is to be applied to the discharge of the debt of which B had demanded payment.

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    Throughout this Act, except otherwise provided, the words "Bangladesh", "Taka" and "Penal Code" were substituted, for the words "Pakistan" or "East Pakistan", "Rupees" or "Rs." and "Pakistan Penal Code" respectively by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).
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Ministry of Law, Justice and Parliamentary Affairs