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Commerce · Q861

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 861

Q861

A engages B as clerk to collect money for him. B fails to account for some of his receipts and A in consequence calls upon him to furnish security for his duly accounting. A does not acquaint C with B's previous conduct. B afterwards makes default.

A.
The guarantee is not invalid
B.
The guarantee is partly invalid
C.
The guarantee is invalid
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
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