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Commerce · Q980

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 980

Q980

A contracts with B to grow a crop of indigo on A's land and to deliver it to B at a fixed rate and C guarantee A's performance of this contract. B diverts a stream of water which is necessary for irrigation of A's land and thereby prevents him from raising the indigo.

A.
A is liable on his guarantee
B.
A is partly liable on his guarantee
C.
A is no longer liable on his guarantee
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
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