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C lends B a sum of money, and A, at the request of B, accepts a bill of exchange drawn by B upon A to…

Illustration (b) to section 145 holds that A "can recover from B the amount of the bill, but not the sum paid for costs, as there was no real ground for defending the…

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C lends B a sum of money, and A, at the request of B, accepts a bill of exchange drawn by B upon A to secure the amount. C, the holder of the bill, demands payment from A and, on A's refusal, sues him upon the bill. A, without reasonable grounds, defends the suit and has to pay the amount of the bill and costs. What can A recover from B?

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Correct answer B

Illustration (b) to section 145 holds that A "can recover from B the amount of the bill, but not the sum paid for costs, as there was no real ground for defending the action". Under section 145 the surety recovers from the principal debtor what "he has rightfully paid under the guarantee, but, no sums which he has paid wrongfully". Costs of a defence with reasonable grounds would have been recoverable, as illustration (a) shows.

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