New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A continuing guarantee may at any time be revoked by the

    surety_____________
    A By the death of the surety Correct Answer Incorrect Answer
    B As to future transactions, by notice to the debtor Correct Answer Incorrect Answer
    C As to future transactions, by notice to the creditor Correct Answer Incorrect Answer
    D All a, b & c Correct Answer Incorrect Answer
    E Both a & c Correct Answer Incorrect Answer

    Solution

    Special Contract Section 130.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. Section 131.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.

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