Under section 129 of the Indian Contract Act, 1872, what is a guarantee that extends to a series of…

Section 129 calls a guarantee covering a series of transactions a continuing guarantee.

Choose your answer

Under section 129 of the Indian Contract Act, 1872, what is a guarantee that extends to a series of transactions called?

Answer and explanation

Correct answer D

Section 129 calls a guarantee covering a series of transactions a continuing guarantee.

Option A

The statutory definition turns on the series of transactions covered.

Option B

Section 129 classifies the guarantee by the transactions it covers.

Option C

Coverage of a series of transactions does not make a guarantee invalid.

Option D

Section 129 expressly gives this name to a guarantee extending to a series of transactions.