Sunita stood surety under a continuing guarantee for a cash-credit facility that her friend's firm enjoys with a bank. She now wishes to bring her liability to an end. Under section 130 of the Indian Contract Act, 1872, she may do so by:

Section 130 of the Indian Contract Act, 1872 provides that a continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor, while section 129 defines a continuing guarantee as one which extends to a series of transactions. Once notice of revocation is given to the creditor, the surety is discharged only in respect of transactions entered into after the notice takes effect, and liability for transactions already entered into before the revocation remains intact. Notice must be given to the creditor and not merely to the principal debtor, and no consent of the creditor or of the debtor is required to terminate future liability. A cash-credit facility is the classic instance of a continuing guarantee, and revocation operates prospectively.