[amp_mcq option1=”The guarantee is not invalid” option2=”The guarantee is partly invalid” option3=”The guarantee is invalid” option4=”None of the above” correct=”option3″]
The correct answer is C. The guarantee is invalid.
A guarantee is a contract in which a person (the guarantor) agrees to be liable for the debts or obligations of another person (the principal). In this case, A is the principal and B is the guarantor.
A guarantee is only valid if the guarantor has given full disclosure of all material facts to the creditor. In this case, A did not disclose B’s previous conduct to C. This means that C did not have all the information they needed to make an informed decision about whether to enter into the guarantee. As a result, the guarantee is invalid.
Option A is incorrect because the guarantee is invalid. Option B is incorrect because the guarantee is not partly invalid, it is completely invalid. Option D is incorrect because the guarantee is not valid.