Principle: A contract of guarantee is a contract to perform the promise or discharge the liability of a third person in case of his default. Fact: Bank lends โน5 lakh to Rohit; his friend Sunil guarantees the loan. Rohit defaults. The bank sues Sunil directly without first suing Rohit.
-
A
The bank must first exhaust remedies against Rohit before suing Sunil
-
B
The bank can directly sue Sunil as surety for the full amount
-
C
The bank can only sue Sunil for 50% of the default
-
D
Sunil is discharged because the bank did not warn him before lending