In force2023 Revised EditionCurrent version · 2023 Revised EditionSee versions on Attorney General's Chambers(opens the publisher’s site)
Contracts Act · 2023 Revised Edition · Part · Indemnity and Guarantee
Contracts Act · 2023 Revised Edition · Part · Indemnity and Guarantee
Official textFrom Attorney General's Chambers, unchanged
A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor.
surety
“surety” means a person referred to as a surety, or as a guarantor, or by any other corresponding term, in a scholarship agreement.
Illustrations
A, in consideration of B’s discounting, at A’s request, bills of exchange for C, guarantees to B, for 12 months, the due payment of all such bills to the extent of $5,000.
B discounts bills for C to the extent of $2,000. Afterwards, at the end of 3 months, A revokes the guarantee. This revocation discharges A from all liability to B for any subsequent discount. But A is liable to B for the $2,000 on default of C.
A guarantees to B, to the extent of $10,000, that C shall pay all the bills that B shall draw upon him. B draws upon C. C accepts the bill. A gives notice of revocation.
C dishonours the bill at maturity. A is liable upon his guarantee.
surety
“surety” means a person referred to as a surety, or as a guarantor, or by any other corresponding term, in a scholarship agreement.
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