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Under section 130 of the Indian Contract Act, 1872, what step is sufficient for a surety to revoke a…

Section 130 permits the surety to revoke a continuing guarantee for future transactions by giving notice to the creditor. Revocation leaves liability for transactions…

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Under section 130 of the Indian Contract Act, 1872, what step is sufficient for a surety to revoke a continuing guarantee for future transactions?

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Answer and explanation

Correct answer D

Section 130 permits the surety to revoke a continuing guarantee for future transactions by giving notice to the creditor. Revocation leaves liability for transactions already covered in place.

Option feedback

Option A

The principal debtor's consent alone does not provide the required notice to the creditor.

Option B

The creditor receives notice. Section 130 does not require the creditor to agree.

Option C

The statutory recipient is the creditor. Notice to the principal debtor alone is insufficient.

Option D

Notice to the creditor revokes the guarantee as to future transactions.

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