Illustrations
(a) B owes A 2,000 rupees. A desires B to pay the amount to A's account with C, a banker. B, who also banks with C, orders the amount to be transferred from his account to A's credit, and this is done by C. Afterwards, and before A knows of the transfer, C fails. There has been a good payment by B.
(b) A and B are mutually indebted. A and B settle an account by setting off one item against another, and B pays A the balance found to be due from him upon such settlement. This amounts to a payment by A and B, respectively, of the sums which they owed to each other.
(c) A owes B 2,000 rupees. B accepts some of A's goods in reduction of the debt. The delivery of goods operates as a part payment.
(d) A desires B, who owes him Rs. 100, to send him a note for Rs. 100 by post. The debt is discharged as soon as B puts into the post a letter containing the note duly addressed to A.
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More sections of this act
Section 1 · Short title.Section 2 · Interpretation-clause.Section 3 · Communication, acceptance and revocation of proposals.Section 4 · Communication when complete.Section 5 · Revocation of proposals and acceptances.Section 6 · Revocation how made.Section 7 · Acceptance must be absolute.Section 8 · Acceptance by performing conditions, or receiving consideration.India Code, Government of India. Text fetched 09 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.