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Payment
Appropriation of Payment
Appropriation of payment means an adjustment and application of the money to a given transaction.
When there are several debts outstanding from one person to another and certain payment is made by the
Methods of appropriation
Appropriation by law
When the debtor does not signifies either expressly or impliedly nor the creditor appropriates
insufficient to cover the interest as well as the principal then the ordinary rule would be that the
money paid should be appropriated first towards the interest and then the residue if any towards
the principal amount.