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Law · Q1032

Indian Contract Act

Graduate and Post Graduate · Law · question 1032

Q1032

A becomes surety to C for B's conduct as a manager of C's bank. Afterwards B and C contract, without A's permission that B shall become liable for one-fourth of the losses on overdraft. B allows a customer to withdraw and the bank losses a sum of money. To make good this loss A is-

A.
Wholly liable
B.
Not liable
Answer
C.
Liable to the extent of one-fourth
D.
Liable to the extent of three-fourth

Answer: Option B

Solution

Answer: Option B
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