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

Choose the correct answer

Explanation

This scenario represents a continuing guarantee, where A's liability extends to all transactions conducted by C up to the specified amount. Unlike a specific or limited guarantee which covers only a single transaction, a continuing guarantee remains in effect until revoked.

A agrees to be liable up to 5000 rupees for the rent… — 1872 Contract Act | PakQuizHub