Types of Guarantee:
A guarantee may be either (a)‘specific guarantee’ or (b) ‘continuing guarantee.’
(a) Specific Guarantee: It is given for single debt or obligation and comes to an end when the debt guaranteed has been paid or obligation guaranteed has been discharged. Thus, where A gives a loan to B for which C stands guarantee, it is a case of a specific guarantee. In this case, there is a specific debt and the guarantee shall come to an end the moment the loan is repaid.
A specific guarantee cannot be revoked. Once the guarantee is given it cannot be withdrawn or revoked and even after the death of the Surety (guarantor), it continues to operate making his legal representatives liable for the same.
(b) Continuing Guarantee: On the other hand, a continuing guarantee is one where the guarantee given is not for a single or specific debt or obligation, but for a series of debts.
A guarantee may be either (a)‘specific guarantee’ or (b) ‘continuing guarantee.’
(a) Specific Guarantee: It is given for single debt or obligation and comes to an end when the debt guaranteed has been paid or obligation guaranteed has been discharged. Thus, where A gives a loan to B for which C stands guarantee, it is a case of a specific guarantee. In this case, there is a specific debt and the guarantee shall come to an end the moment the loan is repaid.
A specific guarantee cannot be revoked. Once the guarantee is given it cannot be withdrawn or revoked and even after the death of the Surety (guarantor), it continues to operate making his legal representatives liable for the same.
(b) Continuing Guarantee: On the other hand, a continuing guarantee is one where the guarantee given is not for a single or specific debt or obligation, but for a series of debts.
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