28.
The answer is: D
Explanation
The correct option is D: C is not liable to pay the rent as B is yet to default and C's liability will arise only once B has defaulted.
This option is correct, because it follows the principle that the surety's liability arises only when the principal-debtor has defaulted. Upon the default of the principal-debtor, the surety is immediately liable and the creditor is not required to first proceed against the principal-debtor before calling upon the surety to make payment. In this case, A, a landlord, agrees to let his flat out to B for payment of a monthly rent of Rs. 10,000/-. C agrees to act as surety for any default by B in payment of the rent. B is facing a sudden financial crisis and a few days before his rent is due, informs A that he might not be able to pay the rent for January on time. A immediately calls up C and asks him to pay the rent for January as C has guaranteed B's payment of rent. However, C is not liable to pay the rent for January to A, because B has not yet defaulted on his rent. B has only expressed his difficulty in paying the rent on time, but he has not failed to pay it by the due date. Therefore, C's liability as a surety has not arisen and A cannot demand payment from C before B has actually defaulted.
The other options are incorrect for the following reasons:
A: C is liable to pay the rent for January because C has guaranteed it and A is not required to seek the rent beforehand from B. This option is incorrect, because it ignores the fact that B has not yet defaulted on his rent. C's liability as a surety depends on B's default, and not on A's demand. A cannot ask C to pay the rent for January before B has failed to pay it by the due date.
B: C is liable to pay the rent for January because B has defaulted and A can now proceed against the surety. This option is incorrect, because it assumes that B has defaulted on his rent, which is not true. B has only informed A that he might not be able to pay the rent for January on time, but he has not missed the due date. Therefore, B has not defaulted and C's liability as a surety has not arisen.
C: C is not liable to pay the rent for January as the surety only guarantees performance and C is not personally liable for B's default. This option is incorrect, because it contradicts the principle that the surety's liability arises when the principal-debtor has defaulted. The surety does not merely guarantee performance, but also undertakes to discharge the liability of the principal-debtor in case of his default. Therefore, C is personally liable for B's default, if and when it occurs.
E: C is liable to pay the rent for January as B is in financial trouble and unable to pay the rent, and C has agreed to be the surety for B's performance. This option is incorrect, because it also assumes that B has defaulted on his rent, which is not true. B's financial trouble and inability to pay the rent are irrelevant factors for determining C's liability as a surety. C's liability as a surety depends only on whether B has actually defaulted or not.