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Doctrine
Government
regulations Unavailability
Promise to give marriage hall
A B
A B
B has to take 1000 rupees from C and B has to give 1000 rupees to A
B orders C to directly give 1000 rupees to A on behalf of B.
CREDITOR
DEBTOR
3st CONTRACT
Rs.10,000
PERSON A
PERSON B
Where payment of debt to be discharged is indicated (sec. 59)
Example : In this case, payment of Rs.5000 repay by “PERSON B” to
“PERSON A” is indicated that person A has to deduct Rs.5000 from 3rd
contract.
Rs.5000
3rd Contract
PERSON A PERSON B
Where payment of debt to be discharged is not indicated (sec. 60)
Example : In this case, payment of Rs.5000 to be repaid by “PERSON B”
to “PERSON A” is not clearly mentioned towards a particular contract, so
person A can deduct that Rs.5000 from any contract i.e from 1st , 2nd or 3rd.
Rs.5000
Not indicated
PERSON A PERSON B
from which
Deduct from contract
any contract
Where the debtor does not intimate and the creditor fails to appropriate (sec. 61)
Example : In this case, payment of Rs.5000 to be repaid by “PERSON B” to
“PERSON A” from a specific contract is not clearly known by “PERSON B” and
“PERSON A”, then 1st debt shall be deemed to be repaid first i.e person A will surely
deduct that Rs.5000 from 1st. Contract.
Rs.5000
Not indicated
PERSON A from which PERSON B
contract
Fails to choose from which
contract he can deduct so in
this case compulsorily he can
deduct from 1st contract
Krell v Henry [1903] 2 KB 740
The plaintiff hired a flat to the defendant for 26 and 27 June 1902.
The defendant intended to use the flat in order to watch and celebrate the
coronation procession of Edward VII which would pass by the flat.
No mention of this purpose was made in the contract. A prepayment of
one-third of the rent was made.
Due to the sudden illness of the King the coronation procession was
cancelled and the defendant refused to pay the balance of the rent owing.
It was held that the plaintiff could not recover these moneys since the
contract had been frustrated by the cancellation of the procession.
The court found that the procession and the position of the flat formed the
objective of the contract which was thus frustrated and discharged as a
result.
Flat
Plaintiff (Krell)
Defendant (Henry)
Cancelled
Plaintiff (Krell)
Defendant (Henry)
Plaintiff (Krell)
The court held that krell
could not recover
remaining balance.