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A guarantees to C, to the extent of 2,000 rupees, payment for rice to be supplied by C to B. C supplies…

Illustration (c) to section 145 holds that "A cannot recover from B more than the price of the rice actually supplied". The implied promise of indemnity in section 145…

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A guarantees to C, to the extent of 2,000 rupees, payment for rice to be supplied by C to B. C supplies to B rice of less value than 2,000 rupees, but obtains from A payment of 2,000 rupees in respect of the rice supplied. What can A recover from B?

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Correct answer B

Illustration (c) to section 145 holds that "A cannot recover from B more than the price of the rice actually supplied". The implied promise of indemnity in section 145 covers what the surety "has rightfully paid under the guarantee", but "no sums which he has paid wrongfully". The excess over the price of the rice was never owed by B, but that is no reason to deny A the amount B really owed.

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