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A guarantees to B, to the extent of 10,000 rupees, that C shall pay all the bills that B shall draw…

Illustration (b) to section 130 concludes that "A is liable upon his guarantee". Revocation under section 130 works only "as to future transactions", and the transaction…

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A guarantees to B, to the extent of 10,000 rupees, that C shall pay all the bills that B shall draw upon him. B draws a bill upon C, and C accepts it. A then gives B notice of revocation. C dishonours the bill at maturity. What is A's position?

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Correct answer D

Illustration (b) to section 130 concludes that "A is liable upon his guarantee". Revocation under section 130 works only "as to future transactions", and the transaction here, the drawing and acceptance of the bill, was complete before A's notice. That the bill fell due after the notice does not matter.

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