This is a case between Devaynes vs Noble (1816).
The Clayton's Case is a popular case / rule regarding appropriation of payment.
When a debtor owes several debts to one creditor, when a payment is made, the debtor has the right to chose when debt account of his several debts needs to be appropriated with the payment. This can be done either expressly or by implication at the time of the payment.
In the absence of an appropriation, the creditor may appropriate at any time.
- Fidler's example
- Eve J's opinion on debtors right about appropriation
- Bank, Banker, Banking, Banking Company