26 February, 2016

Distinguish between Simple and Continuing Guarantee

Simple and Continuing Guarantee can be distinguished as follows-
Simple Guarantee
Continuing Guarantee
1.     Simple guarantee is defined under Section 126 of the Contract Act.
2.    It is a contract of guarantee to perform the promise or discharge the liability of third person in case of his default for a single transaction.
1. Continuing guarantee is defined under Section 129 of the Contract Act.
2.      It is such a contract of guarantee which extends to a series of transactions.

Courtesy:- Legal Point Foundation

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