A owes B Rs. 1,000/- but the debt is barred by the Limitation Act. A signs a written promise to pay Rs. 500/- on account of debt.
Verified Answer
A. This is not a contract
B. This is a contract
C. Either (1) or (2)
D. None of these
Explanation:
Section 25(3) of the Indian Contract Act, 1872, provides an exception that a promise made in writing and signed, to pay wholly or in part a debt barred by the law of limitation, is a valid contract.