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Law · Q171

Indian Contract Act

Graduate and Post Graduate · Law · question 171

Q171

C, advances to B, his tenant Rs. 2,000 on the guarantee of A. C has also a further security for Rs. 2,000 by a mortgage of B's furniture. C cancels the mortgage. B becomes insolvent and C sues A on his guarantees.

A.
A is discharged from liability
B.
A is not discharged from liability
Answer
C.
B is not discharged from liability
D.
None of the above

Answer: Option B

Solution

Answer: Option B
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