Multiple choice

A becomes surety to C for B's conduct as a manager of C's bank. Afterwards, B and C contract without A's permission that B shall become liable for one-fourth of the losses on overdraft. B allows a customer to overdraw and the bank loses a sum of money. To make good this loss, A is

  1. wholly liable

  2. not Liable

  3. liable to the extent of one-fourth

  4. liable to the extent of three-fourths
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B Correct answer
Explanation

Option (1) is incorrect: A is not liable for the loss. Option (2) is correct: A is discharged from his suretyship by the variance made without his consent and so is not liable to make good this loss. Option (3) is incorrect: A is not liable for the loss. Option (4) is incorrect: A is not liable for the loss.

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