Question

Solve.
X owes Y Rs. 1,000 and Z owes X Rs. 1,000. Can Y recover Rs. 1,000 from Z
(a) if no agreement has been entered into between X, Y and Z
(b) if Y accepts Z as his debtor in pursuance of an agreement entered into between X, Y and Z?

Answer 1

Solution:Section to which the given problem relates: Section 62.
Decesion:
case (a) Y cannot recover from Z because there is privity of contract between Y and Z.
case (b) Y can recover from Z because X, the promisor has transferred his liability by novation (i.e. by tripartite agreement between, promisor, promisee and transferee)