X' and 'Y' have jointly taken a loan from 'Z' with promise to repay the same with interest within two years. The loan is not repaid. 'Z' releases 'X' from liability and institutes a suit for recovery of the entire amount due from 'Y' alone. 'Z' in law is entitled to recover:

A) The entire outstanding from 'Y' B) Z' having unilaterally released 'X' from the promise to repay has forfeited his right to recovery the loan amount from 'Y' also C) Z' having unilaterally released 'X' is entitled to recover only 50% of the outstanding from 'Y' D) Unilateral release by 'Z' of 'X' from liability is void and 'Z' can maintain a suit against both 'X' and 'Y'

Answer & Solution

Correct Answer: Option A

Let's discuss the solution. Join the discussion

Question posted by Examveda

Community

Join the Discussion

Join the discussion

No comments yet Be the first to discuss this question.

Keep Learning

X' and 'Y' have jointly taken a loan from 'Z' with...

X' and 'Y' have jointly taken a loan from 'Z' with promise to repay the same with interest within two years. The loan is not repaid. 'Z' releases 'X' from liability and institutes a suit for recovery of the entire amount due from 'Y' alone. 'Z' in law is entitled to recover:

Join the Discussion

Related Questions on Indian Contract Act