Solve :
X borrows Rs. 100 from Y and gives him a bond for Rs. 200 payable by five yearly instalments of Rs. 40 with a stipulation that in default of payment of any instalment, the whole shall become due. Discuss the legal position.

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Solution

Solution: Section to which the given problem relates: Section 74.
Decision and Reason: Y is entitled to recover from X such compensation as the court considers reasonable because the stipulation is in the nature of a penalty.

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Solve :X borrows Rs. 100 from Y and gives him a bond for Rs. 200 payable by five yearly instalments of Rs. 40 with a stipulation that in default of payment of any instalment, the whole shall become due. Discuss the legal position.

Solution: Section to which the given problem relates: Section 74.Decision and Reason: Y is entitled to recover from X such compensation as the court considers reasonable because the stipulation is in the nature of a penalty.

Solve :
X borrows Rs. 100 from Y and gives him a bond for Rs. 200 payable by five yearly instalments of Rs. 40 with a stipulation that in default of payment of any instalment, the whole shall become due. Discuss the legal position.

Solution: Section to which the given problem relates: Section 74.
Decision and Reason: Y is entitled to recover from X such compensation as the court considers reasonable because the stipulation is in the nature of a penalty.