Question

In which of the following circumstances a continuing guarantee can be revoked?

• A. By notice of revocation by the surety
• B. By the death of the surety
• C. Both (A) & (B)
• D. None of the above

Answer 1

The correct option is C Both (A) & (B)

Section 130 of the Indian Contract Law,1872 talks about Revocation of continuing guarantee.—A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor." and Section 131 of Indian Contract Act, 1872 talks about "Revocation of continuing guarantee by surety’s death.—The death of the surety operates, in the absence of any contract to the contrary, as a revocation of a continuing guarantee, so far as regards future transactions."