254 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
(ii) Where the covenantor’s death occurs after the obligation has accrued due, there is no performance.
Satisfaction
I. Problem. —A is under an obligation to B. A makes a gift to B. The Question is : Is the gift to B to be taken as a gift or is the gift to B to be taken as satisfaction of A’s obligation to B ?
II. There is a similarity between satisfaction and performance. There are fundamental distinctions between the two.
(1) In performance, the act done is available for the discharge of the obligation, but is not related in specific terms to the obligee. In satisfaction, it is related to the obligee but not in discharge of the obligation.
(2) In performance, whether the covenant has been performed depends, not upon the intention but, upon whether that has been done which was agreed to be done. The question, whether a gift satisfies an obligation, depends upon the intention of the donor.
(3) If an obligation has been performed-according to its terms, the obligor is discharged. If an obligor makes a gift by will in satisfaction of his liability, it rests with the obligee either to accept the gift or decline it. If he accepts it, he looses the right to enforce his obligation, if he declines it, he retains his original rights.
II. Intention is that, the gift is in satisfaction of the prior obligation.
III. Cases in which the question of satisfaction arises fall into two classes:—
(i) Cases in which the prior obligation arises from an act of bounty.
(ii) Cases in which the prior obligation is of the nature of a debt.
IV. Class of cases in which the prior obligation arises from an act of bounty.
In this class fall two kinds of cases—
(A) Satifaction of legacies by portion.
(B) Satisfaction of portions by legacies.
(A) Satisfaction of legacies by portion
Portion —That part of a person’s estate which is given or left to a child.