AIBE III 2012 Question 28 Answer

AIBE III 2012 Question 28

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Question 28 of 100 AIBE III 2012 Set Common

A, a landlord, agrees to let his flat out to B for payment of a monthly rent of Rs. 10,000/-. C agrees to act as surety for any default by B in payment of the rent. B is facing a sudden financial crisis and, a few days before his rent is due, informs A that he might not be able to pay the rent for January on time. A immediately calls up C and asks him to pay the rent for January as C has guaranteed B's payment of rent. Is C liable to pay the rent for January to A?

A C is liable to pay the rent for January because C has guaranteed it and A is not required to seek the rent beforehand from B.
B C is liable to pay the rent for January because B has defaulted and A can now proceed against the surety.
C C is not liable to pay the rent for January as the surety only guarantees performance and C is not personally liable for B's default.
D C is not liable to pay the rent as B is yet to default and C's liability will arise only once B has defaulted. Official answer
E C is liable to pay the rent for January as B is in financial trouble and unable to pay the rent, and C has agreed to be the surety for B's performance.