A guarantees payment to B of the price of five sacks of flour to be delivered by B to C and to be paid…
Illustration (c) to section 129 says the guarantee "was not a continuing guarantee", so A is not liable for the four sacks. A's promise covered one transaction, the price of…
Choose your answer
A guarantees payment to B of the price of five sacks of flour to be delivered by B to C and to be paid for in a month. B delivers five sacks to C, and C pays for them. Afterwards B delivers four more sacks to C, which C does not pay for. Is A liable for the price of the four sacks?
Answer and explanation
Correct answer C
Illustration (c) to section 129 says the guarantee "was not a continuing guarantee", so A is not liable for the four sacks. A's promise covered one transaction, the price of five particular sacks, and it was spent once C paid for them. A continuing guarantee must extend "to a series of transactions", which this one did not.
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