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let us discuss types of guarantees now guarantee may be either specific guarantee or continuing guarantee specific as the word says applies to a single debt or a single specific transaction transaction now lets say that x offers to sell computers to y for rupees 2 lakhs why will pay money till when is he liable lets say x sold the computers why paid the money transaction is over guarantee comes to an end what if y fails to pay money then x can recover it from the surety but transaction is over the guarantee also comes to an end what is continuing guarantee it is a guarantee which applies to a series of transactions one after the other lets say that the bank agrees to give loan up to rupees 5 lakhs to ex now im no longer liable what if x defaults i will have to pay more than four lakhs i dont have more than four lakhs now so he revokes his guarantee the suretys guarantee comes to an end after revocation so continuing guarantee can come to an end on revocation surety is liable unt
