The plaintiff supplied to a company of which the defendant was a director. The company being unable to pay the plaintiff agreed to suspend the claim for a year provided that the debt was jointly and severally guaranteed by the companys three directors. A guarantee apparently signed by the defendant and other directors was duly provided. The company went into liquidation. The plaintiff sought to enforce the guarantee. Before, the trial of the action, it was discovered that the signature of one of the directors had been forged. Is the guarantee valid? If yes, I the director whose signature is forged, liable under this guarantee? - The defendant guaranteed the repayment of a loan of Rs. 20,000 given by the plaintiff bank to the principal debtor. The guaranteed paper showed the loan to be Rs. 25,000. The bank refused to accept. The principal then reduced the amount to Rs. 20,000 and without intimation to the surety gave it to the bank which was then accepted. The principal debtor failed to pay and the bank sued the surety. Would surety be obligated to pay?