Lawgist129"Continuing guarantee"
A guarantee which extends to a series of transactions, is called a "continuing guarantee".
Illustrations
(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. This is a continuing guarantee.
(b) A guarantees payment to B, a tea-dealer, to the amount of £ 100, for any tea he may from time to time supply to C. B supplies C with tea to above the value of £ 100, and C pays B for it. Afterwards, B supplies C with tea to the value of £ 200. C fails to pay. The guarantee given by A was a continuing guarantee, and he is accordingly liable to B to the extent of £ 100.
(c) A guarantees payment to B of the price of five sacks of flour to be delivered by B to C and to be paid for in a month. B delivers five sacks to C. C pays for them. Afterwards B delivers four sacks to C, which C does riot pay for. The guarantee given by A was not a continuing guarantee, and accordingly he is not liable for the price of the four sacks.
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- 124 "Contract of indemnity" define
- 125 Rights of indemnity-holder when sued
- 126 "Contract of guarantee", "surety", "principal debtor" and "creditor"
- 127 Consideration for guarantee
- 128 Surety's liability
- 129 "Continuing guarantee"
- 130 Revocation of continuing guarantee
- 131 Revocation of continuing guarantee by surety's death
- 132 Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on others default
- 133 Discharge of surety by variance in terms of contract
- 134 Discharge of surety by release or discharge of principal debtor
- 135 Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor
- 136 Surety not discharged when agreement made with third person to give time to principal debtor
- 137 Creditor's forbearance to sue does not discharge surety
- 138 Release of one co-surety does not discharge others
- 139 Discharge of surety of creditor's act or omission impairing surety's eventual remedy
- 140 Rights of surety on payment or performance
- 141 Surety's right to benefit of creditor's securities
- 142 Guarantee obtained by misrepresentation invalid
- 143 Guarantee obtained by concealment invalid
- 144 Guarantee on contract that creditor shall not act on it until co-surety joins
- 145 Implied promise to indemnify surety
- 146 Co-sureties liable to contribute equally
- 147 Liability of co-sureties bound in different sums
