A is liable not only for the amount of the bill but also for any interest and charges which may have become due on it.

Continuing guarantee Continuing guarantee.—A guarantee which extends to a series of transactions is called a "continuing guarantee".

Illustrations.

1. (a) A, in consideration that B will employ C in collecting the rents of B's zamindari, promises B to be responsible to the amount of 5,000 rupees, for the due collection and payment by C of those rents. This is a continuing guarantee.
2. (b) A guarantees payment to B, a tea-dealer, to the amount of £100 for any tea he may from time to time supply to C. B supplies C with tea to above the value of £100, and C pays B for it. Afterwards B supplies C with tea to the value of £200. C fails to pay. The guarantee given by A was a continuing guarantee, and he is accordingly liable to B to the extent of £100.
3. (c) A guarantees payment to B of the price of five sacks of flour to be delivered by B to C and to be paid for in a month. B delivers five sacks to C. C pays for them. Afterwards B delivers four sacks to C, which C does not pay for.