A in consideration that B will employ C in collecting the rent of B's zamindari, promises B to be responsible, to the amount of 5000 rupees for the due collection and payment by C of those rents. This is a________________?
Correct answer: A. Continuing guarantee
- A. Continuing guarantee
- B. Restricted guarantee
- C. Limited guarantee
- D. None of above
Explanation
This is a continuing guarantee because it covers the repeated collection and payment of rents by C, rather than one isolated transaction. The liability is capped at 5,000 rupees, but that limit does not change its continuing character.
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