Xco has a current account with Bankco. Bankco has agreed the account may be overdrawn up to a limit of $50,000. A contract of guarantee covers any indebtedness on Xco's account up to a limit of $40,000. This is a continuing guarantee. The Guarantor terminates the guarantee on June 5. Bankco does not rule off the account. Reproduced below is a statement for the month of June. It is now July. On July 1 Bankco terminates the overdraft agreement and calls on Xco to immediately pay the debit balance. Xco fails to meet the demand from Bankco. Bankco now plans to demand payment from the Guarantor. Applying the rule in Clayton's Case what is the Guarantor's liability to Bankco (if any) on the guarantee? Date Debit Credit Balance 10,000 Opening balance 30,000 (20,000) June 3 7,000 (27,000) June 4 1,000 (28,000) June 7 5,000 (33,000) June 8 5,000 (38,000) June 10 6,000 (44,000) June 13 3,000 (41,000) June 15 2,000 (43,000) June 18 1,500 (44,500) June 21 7,500 (37,000) June 25 2,000 (39,000) June 28 1,000 (38,000) June 29 TOP