CAF-4 · Chapter 11 · Question 6 of 10
A guarantee which extends to a series of transactions is called a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Continuing guarantee.
Explanation
Section 129 defines a continuing guarantee as one that covers a series of transactions rather than a single one.
More Indemnity and guarantee MCQs
- Q8The death of the surety operates as a 'revocation' of a continuing guarantee, so far as regards 'future' transactions:
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- Q10Any guarantee which has been obtained by means of 'misrepresentation' made by the creditor, or with his knowledge and assent, concerning a…
- Q1A contract of guarantee is a contract to perform the promise, or discharge the liability, of a third person in case of his:
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