Question 1. Penny owes Mandla R20000 in respect of several debts. Penny pays Mandla an amount of R10000, but does not stipulate which debt/s he is actually paying.

Which one of the following principles will apply to this case?

1. Capital is paid before interest.

2. Onerous debts do not have preference over non-onerous debts.

3. Old debts do not have preference over new debts.

4. Due debts are paid before debts which have not yet fallen due.