Indemnity, guarantee

bailment
• A wanted to start a business and borrow money from his uncle B. B
lent the money on request of A’s father AF, who assured that if A
could not pay him off in six months, AF would. AF also stated that in
case he dies in the mean while his older son C will pay off he debt. C
is in USA and has no knowledge of this discussion.
• A takes the money and orders inventory for a superstore he proposes
to open and rent s a shop in a busy market. The rent agreement
states that if A is unable to pay rent for three consecutive months the
landlord will take over all inventory in the store and ell it off to
recover the rent.
• A does very well in the first three month of the business but then falls
sick. After taking a few weeks off, A reopens the store but some of
the inventory is spoilt and other was destroyed due to flooding during
the rains.
• A is unable to raise anymore money for inventory and pay rent.

• Advise the parties

A wanted to start a business and borrow money from his uncle
B. B lent the money on request of A’s father AF, who assured
that if A could not pay him off in six months, AF would. AF also
stated that in case he dies in the mean while his older son C will
pay off he debt. C is in USA and has no knowledge of this
discussion.
A takes the money and orders inventory for a superstore he
proposes to open and rent s a shop in a busy market. The rent
agreement states that if A is unable to pay rent for three
consecutive months the landlord will take over all inventory in
the store and ell it off to recover the rent.