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A continuing guarantee under the Indian Contract Act can be revoked by:
AMere change in the principal debtor's address
BNotice from the surety, or by death of the surety
CIncrease in the creditor's rates of interest
DInsolvency of the surety's bank
Answer & Solution
Correct answer: B. Notice from the surety, or by death of the surety
1. The Act provides two modes of revocation for continuing guarantee.
2. First, by notice from the surety as to future transactions.
3. Second, by death of the surety as to future transactions, unless otherwise agreed.
_Source: ICMAI BoS CMA Foundation Paper 1 (Business Laws), Module 2 §2.7 (Indemnity/Guarantee/Pledge/Agent), p. 91-99_
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