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A and B go into a shop. A buys goods on credit and remains primarily liable for their price. Before the…

B undertakes to pay A's debt if A defaults, while A remains primarily liable. That is a guarantee under section 126: B is the surety, A the principal debtor, and the…

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A and B go into a shop. A buys goods on credit and remains primarily liable for their price. Before the sale, B tells the shopkeeper: "Let A have the goods; if A defaults in paying the price, I will pay it." The shopkeeper agrees and supplies the goods on that basis. Under the Indian Contract Act, 1872, B's undertaking is a contract of:

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Correct answer A

B undertakes to pay A's debt if A defaults, while A remains primarily liable. That is a guarantee under section 126: B is the surety, A the principal debtor, and the shopkeeper the creditor. The agreed credit sale supplies consideration for B's undertaking.

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