L A of Busi. Sec. Q54

0. A guarantees payment to B, a tea-dealer, to the amount of Rs. 100, for any tea he may from time to time supply to C. B supplies C with tea to above the value of Rs. 100, and C pays B for it. Afterward B supplies C with tea to the value of Rs. 200. C fails to pay.

A
The guarantee given by A was not a continuing guarantee, and he is not accordingly liable to b to the extent of Rs. 100
B
The guarantee given by A was a continuing guarantee, and he is also liable to B to the extent of Rs. 200
C
The guarantee given by A was a continuing guarantee, and he is accordingly liable to B to the extent of Rs. 100
D
None of these

Answer
Comment
Array

Option : C
Explanation :

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