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'A' becomes surety to 'C' for 'B's' conduct as a manager of 'C's' bank. Afterwards 'B' and 'C'…

Section 133 of the Indian Contract Act discharges a surety as to transactions subsequent to a variance made in the terms of the contract between the creditor and the…

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'A' becomes surety to 'C' for 'B's' conduct as a manager of 'C's' bank. Afterwards 'B' and 'C' contract, without 'A's' permission that 'B' shall become liable for one-fourth of the losses on overdraft. 'B' allows a customer to withdraw and the bank loses a sum of money. To make good this loss 'A' is:

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Correct answer D

Section 133 of the Indian Contract Act discharges a surety as to transactions subsequent to a variance made in the terms of the contract between the creditor and the principal debtor without the surety's consent, so for this loss A is "Not liable".

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