A, B and C jointly promised to pay D a sum of 6,000. Examine, considering the provisions of the Indian Contract Act, 1872 - (i) Can D compel any of…
CA Foundation · Business Laws · PYQS · January 2025
A, B and C jointly promised to pay D a sum of 6,000. Examine, considering the provisions of the Indian Contract Act, 1872 - (i) Can D compel any of three parties A, Band C to pay him - 6,000? (ii) C is compelled to pay the whole of the amount to D. Can he recover anything from A and B, when - (1) Both A and B were solvents. (2) A is not in a position to pay anything.
Suggested Answer and Working Notes:
Section 42 of the Indian Contract Act,1872 requires that when two or more persons have made a joint promise, then, unless a contrary intention appears from the contract, all such persons jointly must fulfil the promise. In the event of the death of any of them, his representative jointly with the survivors and in case of the death of all promisors, the representatives of all jointly must fulfil the promise. Section 43 allows the promisee to seek performance from any of the joint promisors. The liability of the joint promisors has thus been made not only joint but “joint and several”. Section 43 provides that in the absence of express agreement to the contrary, the promisee may compel any one or more of the joint promisors to perform the whole of the promise. Section 43 deals with the contribution among joint promisors. The promisors, may compel every joint promisor to contribute equally to the performance of the promise (unless a contrary intention appears from the contract). If any one of the joint promisors makes default in such contribution the remaining joint promisors must bear the loss arising from such default in equal shares. In the instant case, (i) D can compel any of three parties A, B and C to pay him - 6,000. (ii) (1) C can recover the contribution from A and B because A, B and C are joint promisors. (2) A is unable to pay anything, C is compelled to pay the whole. C is entitled to receive - 3,000 from B.
Topics: The Indian Contract Act, 1872
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