A obtains the guarantee from B in default of C that he will deliver high quality goods to C for which B will pay monthly. On the delivery of goods, it was found out that the goods are in fact low quality.
A Is not liable.
It was mistake of fact.
A is liable for misrepresentation
B will have to pay because it is a valid contract.
A misrepresented the material fact about his products to enter into a contract of guarantee with B. Hence option C is correct.