A bank advances a loan to a company on the strength of a CONTINUING GUARANTEE given by D for future transactions. D, no longer willing to be bound for future dealings, gives notice to the bank as the law requires. Under Section 130 of the Indian Contract Act, 1872 this notice:

Section 130 of the Indian Contract Act provides that in the absence of a contract to the contrary, a CONTINUING GUARANTEE may at any time be REVOKED by the surety, as to FUTURE transactions, by notice to the creditor. The revocation operates prospectively only: the surety remains liable for liabilities that have already accrued or for transactions entered into before the revocation. It cannot escape liability for the past advances it already guaranteed. This balance gives the surety an exit from future exposure while protecting the creditor's accrued rights. Continuing-guarantee revocation is a core surety question.