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A, in consideration that B will employ C in collecting the rent of B’s zamindari, promises B to be…

A guarantee covering a series of transactions is continuing under section 129. The promise covers successive collections and payments of rents by C, subject to the 5000…

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A, in consideration that B will employ C in collecting the rent of B’s zamindari, promises B to be responsible, to the amount of Rs. 5,000, for the due collection and payment by C of those rents. Under the Indian Contract Act, 1872, this is:

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Correct answer C

A guarantee covering a series of transactions is continuing under section 129. The promise covers successive collections and payments of rents by C, subject to the 5000 rupee limit. Section 129 illustration (a) gives this precise example, which is not confined to a single isolated collection.

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