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Under Section 131, in the absence of a contrary contract, the death of the surety:
ADischarges the estate from all liability
BTransfers the guarantee to the heirs
CRevokes a continuing guarantee for future transactions, though the estate remains liable for past ones
DHas no effect on the guarantee
Answer & Solution
Correct answer: C. Revokes a continuing guarantee for future transactions, though the estate remains liable for past ones
Section 131 makes the surety's death operate as revocation for future transactions, while his estate stays liable for transactions before death.
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