Site navigation

C agrees to appoint B as his clerk to sell goods at a yearly salary, upon A's becoming surety to C for…

Illustration (c) to section 133 states that "A is not liable for subsequent misconduct of B". Changing B's pay from a fixed salary to a commission alters the terms of the…

Choose your answer

C agrees to appoint B as his clerk to sell goods at a yearly salary, upon A's becoming surety to C for B's duly accounting for moneys received by him as clerk. Afterwards, without A's knowledge or consent, C and B agree that B shall be paid by a commission on the goods sold by him instead of a fixed salary. B later fails to account for moneys received. Is A liable?

Select one answer
Answer and explanation

Correct answer D

Illustration (c) to section 133 states that "A is not liable for subsequent misconduct of B". Changing B's pay from a fixed salary to a commission alters the terms of the contract between B and C, and section 133 discharges the surety from any variance made "without the surety's consent". It is no answer that the variance seems minor or does not touch the duty to account.

Practice for these exams

Related exam syllabi

Related questions in this topic