A agrees to be liable up to 5000 rupees for the rent collection and payment made by C, whom B appoints to collect rent from B's zamindari. What type of guarantee is this?

Choose the correct answer

Explanation

This situation describes a continuing guarantee, where A's liability extends to multiple transactions or ongoing obligations up to the stated limit. Unlike a restricted guarantee which covers a single transaction, a continuing guarantee persists over time for all related transactions until revoked.

A agrees to be liable up to 5000 rupees for the rent… — Accounting Mcqs | PakQuizHub