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  3. 2. sandeep guarantees for gaurav, a retail textile

2. Sandeep guarantees for Gaurav, a retail textile merchant, for an amount of 1,00,000, for...

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Accounting

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2. Sandeep guarantees for Gaurav, a retail textile merchant, for an amount of 1,00,000, for which Sharma, the supplier may from time to time supply goods on credit basis to Gaurav during the next 3 months. After 1 month, Sandeep revokes the guarantee, when Sharma had supplied goods on credit for 40,000. Referring to the provisions of the Indian Contract Act, 1872, decide whether Sandeep is discharged from all the liabilities to Sharma for any subsequent credit supply. What would be your answer in case Gaurav makes default in paying back Sharma for the goods already supplied on credit i.e. 40,000

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