When and how guarantee is revoked?
A guarantee for future transactions can be revoked at any time by notification to the debtors. However, for transactions entered before such cancellation of the guarantee the liability of a guarantor shall not be reduced.
What is a continuing guarantee?
129- A guarantee which extends to a series of transactions, is called a "continuing guarantee" Examples: - (a) A, in consideration that B will employ C in collecting the rent of B's zamindari, promises B to be responsible, to the amount of 5,000 rupees, for the due collection and payment by C of those rents.
What is revoke guarantee?
Section 130 in The Indian Contract Act, 1872 [Complete Act] three months, A revokes the guarantee. This revocation discharges A from all liability to B for any subsequent discount ... three months, A revokes the guarantee. This revocation discharges A from all liability to B for any subsequent discount.
Under what circumstances does guarantee become invalid?
Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and assent, concerning a material part of the transaction, is invalid.