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business law: breach of contract

Law
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A obtains 5 different loans from B in the following manner. month amount interest Nov 2014 20000 20% Dec 2014 40000 5% Feb 2015 10000 10% Mar 2015 10000 15% Total 80000 A decides to make repay only a sum of 50000 in april,2015. please explain taking above example as how the debts shall be appropriated as per clayton's rule of appropriation of payment under the contract act.

Apr 24th, 2015

Clayton's case explains itself in the ,UK's 1816 case (Devaynes v. Noble) which set the precedent that funds  withdrawn from an account  are presumed to benefits from the funds deposited first-in first out (FIFO) principle . This ruling, however, is not applicable to trustees  who are presumed to draw  their own money from mixed bank-accounts and not the trust  money, no matter when it was deposited.




Read more: http://www.businessdictionary.com/definition/Clayton-s-case.html#ixzz3YD9SQYer

Apr 24th, 2015

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