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The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Sec. 126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as a contract to perform the promise, or discharge the liability of a third person in case of his defaults. Contracts of guarantees may be classified into two types: specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee. However, a guarantee which extends to a series of transactions is called a continuing guarantee. The suretys liability, in this case, would continue till all the transactions are completed or till the guarantor revokes the guarantee as to the future transactions.A continuing guarantee is defined under Section 129 of the Indian Contract Act, 1872. A continuing guarantee is a type of guarantee which applies to a series of transactions. It applies to all the transactions entered into by the principal debtor until it is revoked by the surety. Therefore, bankers always prefer to have a continuing guarantee so that the guarantors liability is not limited to the original advances and would also extend to all subsequent debts.The most important feature of a continuing guarantee is that it applies to a series of separable, distinct transactions. Therefore, when a guarantee is given for an entire consideration, it cannot be termed as a continuing guarantee.So far as a guarantee given for an existing debt is concerned, it cannot be revoked, as once an offer is accepted it becomes final. However, a continuing guarantee can be revoked for future transactions. In that case, the surety shall be liable for those transactions which have already taken place.After making a payment and discharging the liability of the principal debtor, the surety gets various rights. These rights can be studied under three heads:Rights against the principal debtors: In every contract of guarantee, there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee. This is because the surety has suffered a loss due to the non-fulfilment of promise by the principal debtor and therefore the surety has a right to be compensated by the debtorOn the default of payment by the principal debtor, when the surety pays off the debt of the principal debtor he becomes entitled to claim all the securities which were given by the principal debtor to the creditor. The surety has the right to all securities whether received before or after the creation of the guarantee and it is also immaterial whether the surety has knowledge of those securities or not.Q.Lal gave his house to Tanu on a lease for ten years on a specified lease rent. Quzi guaranteed that Tanu would fulfil his obligations. After seven years, Tanu stopped paying the lease rent. Lal sued him for the payment of rent. Quzi then gave a notice revoking his guarantee for the remaining three years.a)This is a continuing guarantee.b)This is a specific guarantee.c)This is a case of indemnity.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Sec. 126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as a contract to perform the promise, or discharge the liability of a third person in case of his defaults. Contracts of guarantees may be classified into two types: specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee. However, a guarantee which extends to a series of transactions is called a continuing guarantee. The suretys liability, in this case, would continue till all the transactions are completed or till the guarantor revokes the guarantee as to the future transactions.A continuing guarantee is defined under Section 129 of the Indian Contract Act, 1872. A continuing guarantee is a type of guarantee which applies to a series of transactions. It applies to all the transactions entered into by the principal debtor until it is revoked by the surety. Therefore, bankers always prefer to have a continuing guarantee so that the guarantors liability is not limited to the original advances and would also extend to all subsequent debts.The most important feature of a continuing guarantee is that it applies to a series of separable, distinct transactions. Therefore, when a guarantee is given for an entire consideration, it cannot be termed as a continuing guarantee.So far as a guarantee given for an existing debt is concerned, it cannot be revoked, as once an offer is accepted it becomes final. However, a continuing guarantee can be revoked for future transactions. In that case, the surety shall be liable for those transactions which have already taken place.After making a payment and discharging the liability of the principal debtor, the surety gets various rights. These rights can be studied under three heads:Rights against the principal debtors: In every contract of guarantee, there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee. This is because the surety has suffered a loss due to the non-fulfilment of promise by the principal debtor and therefore the surety has a right to be compensated by the debtorOn the default of payment by the principal debtor, when the surety pays off the debt of the principal debtor he becomes entitled to claim all the securities which were given by the principal debtor to the creditor. The surety has the right to all securities whether received before or after the creation of the guarantee and it is also immaterial whether the surety has knowledge of those securities or not.Q.Lal gave his house to Tanu on a lease for ten years on a specified lease rent. Quzi guaranteed that Tanu would fulfil his obligations. After seven years, Tanu stopped paying the lease rent. Lal sued him for the payment of rent. Quzi then gave a notice revoking his guarantee for the remaining three years.a)This is a continuing guarantee.b)This is a specific guarantee.c)This is a case of indemnity.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Sec. 126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as a contract to perform the promise, or discharge the liability of a third person in case of his defaults. Contracts of guarantees may be classified into two types: specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee. However, a guarantee which extends to a series of transactions is called a continuing guarantee. The suretys liability, in this case, would continue till all the transactions are completed or till the guarantor revokes the guarantee as to the future transactions.A continuing guarantee is defined under Section 129 of the Indian Contract Act, 1872. A continuing guarantee is a type of guarantee which applies to a series of transactions. It applies to all the transactions entered into by the principal debtor until it is revoked by the surety. Therefore, bankers always prefer to have a continuing guarantee so that the guarantors liability is not limited to the original advances and would also extend to all subsequent debts.The most important feature of a continuing guarantee is that it applies to a series of separable, distinct transactions. Therefore, when a guarantee is given for an entire consideration, it cannot be termed as a continuing guarantee.So far as a guarantee given for an existing debt is concerned, it cannot be revoked, as once an offer is accepted it becomes final. However, a continuing guarantee can be revoked for future transactions. In that case, the surety shall be liable for those transactions which have already taken place.After making a payment and discharging the liability of the principal debtor, the surety gets various rights. These rights can be studied under three heads:Rights against the principal debtors: In every contract of guarantee, there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee. This is because the surety has suffered a loss due to the non-fulfilment of promise by the principal debtor and therefore the surety has a right to be compensated by the debtorOn the default of payment by the principal debtor, when the surety pays off the debt of the principal debtor he becomes entitled to claim all the securities which were given by the principal debtor to the creditor. The surety has the right to all securities whether received before or after the creation of the guarantee and it is also immaterial whether the surety has knowledge of those securities or not.Q.Lal gave his house to Tanu on a lease for ten years on a specified lease rent. Quzi guaranteed that Tanu would fulfil his obligations. After seven years, Tanu stopped paying the lease rent. Lal sued him for the payment of rent. Quzi then gave a notice revoking his guarantee for the remaining three years.a)This is a continuing guarantee.b)This is a specific guarantee.c)This is a case of indemnity.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.

Solutions for The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Sec. 126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as a contract to perform the promise, or discharge the liability of a third person in case of his defaults. Contracts of guarantees may be classified into two types: specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee. However, a guarantee which extends to a series of transactions is called a continuing guarantee. The suretys liability, in this case, would continue till all the transactions are completed or till the guarantor revokes the guarantee as to the future transactions.A continuing guarantee is defined under Section 129 of the Indian Contract Act, 1872. A continuing guarantee is a type of guarantee which applies to a series of transactions. It applies to all the transactions entered into by the principal debtor until it is revoked by the surety. Therefore, bankers always prefer to have a continuing guarantee so that the guarantors liability is not limited to the original advances and would also extend to all subsequent debts.The most important feature of a continuing guarantee is that it applies to a series of separable, distinct transactions. Therefore, when a guarantee is given for an entire consideration, it cannot be termed as a continuing guarantee.So far as a guarantee given for an existing debt is concerned, it cannot be revoked, as once an offer is accepted it becomes final. However, a continuing guarantee can be revoked for future transactions. In that case, the surety shall be liable for those transactions which have already taken place.After making a payment and discharging the liability of the principal debtor, the surety gets various rights. These rights can be studied under three heads:Rights against the principal debtors: In every contract of guarantee, there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee. This is because the surety has suffered a loss due to the non-fulfilment of promise by the principal debtor and therefore the surety has a right to be compensated by the debtorOn the default of payment by the principal debtor, when the surety pays off the debt of the principal debtor he becomes entitled to claim all the securities which were given by the principal debtor to the creditor. The surety has the right to all securities whether received before or after the creation of the guarantee and it is also immaterial whether the surety has knowledge of those securities or not.Q.Lal gave his house to Tanu on a lease for ten years on a specified lease rent. Quzi guaranteed that Tanu would fulfil his obligations. After seven years, Tanu stopped paying the lease rent. Lal sued him for the payment of rent. Quzi then gave a notice revoking his guarantee for the remaining three years.a)This is a continuing guarantee.b)This is a specific guarantee.c)This is a case of indemnity.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Sec. 126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as a contract to perform the promise, or discharge the liability of a third person in case of his defaults. Contracts of guarantees may be classified into two types: specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee. However, a guarantee which extends to a series of transactions is called a continuing guarantee. The suretys liability, in this case, would continue till all the transactions are completed or till the guarantor revokes the guarantee as to the future transactions.A continuing guarantee is defined under Section 129 of the Indian Contract Act, 1872. A continuing guarantee is a type of guarantee which applies to a series of transactions. It applies to all the transactions entered into by the principal debtor until it is revoked by the surety. Therefore, bankers always prefer to have a continuing guarantee so that the guarantors liability is not limited to the original advances and would also extend to all subsequent debts.The most important feature of a continuing guarantee is that it applies to a series of separable, distinct transactions. Therefore, when a guarantee is given for an entire consideration, it cannot be termed as a continuing guarantee.So far as a guarantee given for an existing debt is concerned, it cannot be revoked, as once an offer is accepted it becomes final. However, a continuing guarantee can be revoked for future transactions. In that case, the surety shall be liable for those transactions which have already taken place.After making a payment and discharging the liability of the principal debtor, the surety gets various rights. These rights can be studied under three heads:Rights against the principal debtors: In every contract of guarantee, there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee. This is because the surety has suffered a loss due to the non-fulfilment of promise by the principal debtor and therefore the surety has a right to be compensated by the debtorOn the default of payment by the principal debtor, when the surety pays off the debt of the principal debtor he becomes entitled to claim all the securities which were given by the principal debtor to the creditor. The surety has the right to all securities whether received before or after the creation of the guarantee and it is also immaterial whether the surety has knowledge of those securities or not.Q.Lal gave his house to Tanu on a lease for ten years on a specified lease rent. Quzi guaranteed that Tanu would fulfil his obligations. After seven years, Tanu stopped paying the lease rent. Lal sued him for the payment of rent. Quzi then gave a notice revoking his guarantee for the remaining three years.a)This is a continuing guarantee.b)This is a specific guarantee.c)This is a case of indemnity.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Sec. 126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as a contract to perform the promise, or discharge the liability of a third person in case of his defaults. Contracts of guarantees may be classified into two types: specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee. However, a guarantee which extends to a series of transactions is called a continuing guarantee. The suretys liability, in this case, would continue till all the transactions are completed or till the guarantor revokes the guarantee as to the future transactions.A continuing guarantee is defined under Section 129 of the Indian Contract Act, 1872. A continuing guarantee is a type of guarantee which applies to a series of transactions. It applies to all the transactions entered into by the principal debtor until it is revoked by the surety. Therefore, bankers always prefer to have a continuing guarantee so that the guarantors liability is not limited to the original advances and would also extend to all subsequent debts.The most important feature of a continuing guarantee is that it applies to a series of separable, distinct transactions. Therefore, when a guarantee is given for an entire consideration, it cannot be termed as a continuing guarantee.So far as a guarantee given for an existing debt is concerned, it cannot be revoked, as once an offer is accepted it becomes final. However, a continuing guarantee can be revoked for future transactions. In that case, the surety shall be liable for those transactions which have already taken place.After making a payment and discharging the liability of the principal debtor, the surety gets various rights. These rights can be studied under three heads:Rights against the principal debtors: In every contract of guarantee, there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee. This is because the surety has suffered a loss due to the non-fulfilment of promise by the principal debtor and therefore the surety has a right to be compensated by the debtorOn the default of payment by the principal debtor, when the surety pays off the debt of the principal debtor he becomes entitled to claim all the securities which were given by the principal debtor to the creditor. The surety has the right to all securities whether received before or after the creation of the guarantee and it is also immaterial whether the surety has knowledge of those securities or not.Q.Lal gave his house to Tanu on a lease for ten years on a specified lease rent. Quzi guaranteed that Tanu would fulfil his obligations. After seven years, Tanu stopped paying the lease rent. Lal sued him for the payment of rent. Quzi then gave a notice revoking his guarantee for the remaining three years.a)This is a continuing guarantee.b)This is a specific guarantee.c)This is a case of indemnity.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Sec. 126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as a contract to perform the promise, or discharge the liability of a third person in case of his defaults. Contracts of guarantees may be classified into two types: specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee. However, a guarantee which extends to a series of transactions is called a continuing guarantee. The suretys liability, in this case, would continue till all the transactions are completed or till the guarantor revokes the guarantee as to the future transactions.A continuing guarantee is defined under Section 129 of the Indian Contract Act, 1872. A continuing guarantee is a type of guarantee which applies to a series of transactions. It applies to all the transactions entered into by the principal debtor until it is revoked by the surety. Therefore, bankers always prefer to have a continuing guarantee so that the guarantors liability is not limited to the original advances and would also extend to all subsequent debts.The most important feature of a continuing guarantee is that it applies to a series of separable, distinct transactions. Therefore, when a guarantee is given for an entire consideration, it cannot be termed as a continuing guarantee.So far as a guarantee given for an existing debt is concerned, it cannot be revoked, as once an offer is accepted it becomes final. However, a continuing guarantee can be revoked for future transactions. In that case, the surety shall be liable for those transactions which have already taken place.After making a payment and discharging the liability of the principal debtor, the surety gets various rights. These rights can be studied under three heads:Rights against the principal debtors: In every contract of guarantee, there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee. This is because the surety has suffered a loss due to the non-fulfilment of promise by the principal debtor and therefore the surety has a right to be compensated by the debtorOn the default of payment by the principal debtor, when the surety pays off the debt of the principal debtor he becomes entitled to claim all the securities which were given by the principal debtor to the creditor. The surety has the right to all securities whether received before or after the creation of the guarantee and it is also immaterial whether the surety has knowledge of those securities or not.Q.Lal gave his house to Tanu on a lease for ten years on a specified lease rent. Quzi guaranteed that Tanu would fulfil his obligations. After seven years, Tanu stopped paying the lease rent. Lal sued him for the payment of rent. Quzi then gave a notice revoking his guarantee for the remaining three years.a)This is a continuing guarantee.b)This is a specific guarantee.c)This is a case of indemnity.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Sec. 126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as a contract to perform the promise, or discharge the liability of a third person in case of his defaults. Contracts of guarantees may be classified into two types: specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee. However, a guarantee which extends to a series of transactions is called a continuing guarantee. The suretys liability, in this case, would continue till all the transactions are completed or till the guarantor revokes the guarantee as to the future transactions.A continuing guarantee is defined under Section 129 of the Indian Contract Act, 1872. A continuing guarantee is a type of guarantee which applies to a series of transactions. It applies to all the transactions entered into by the principal debtor until it is revoked by the surety. Therefore, bankers always prefer to have a continuing guarantee so that the guarantors liability is not limited to the original advances and would also extend to all subsequent debts.The most important feature of a continuing guarantee is that it applies to a series of separable, distinct transactions. Therefore, when a guarantee is given for an entire consideration, it cannot be termed as a continuing guarantee.So far as a guarantee given for an existing debt is concerned, it cannot be revoked, as once an offer is accepted it becomes final. However, a continuing guarantee can be revoked for future transactions. In that case, the surety shall be liable for those transactions which have already taken place.After making a payment and discharging the liability of the principal debtor, the surety gets various rights. These rights can be studied under three heads:Rights against the principal debtors: In every contract of guarantee, there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee. This is because the surety has suffered a loss due to the non-fulfilment of promise by the principal debtor and therefore the surety has a right to be compensated by the debtorOn the default of payment by the principal debtor, when the surety pays off the debt of the principal debtor he becomes entitled to claim all the securities which were given by the principal debtor to the creditor. The surety has the right to all securities whether received before or after the creation of the guarantee and it is also immaterial whether the surety has knowledge of those securities or not.Q.Lal gave his house to Tanu on a lease for ten years on a specified lease rent. Quzi guaranteed that Tanu would fulfil his obligations. After seven years, Tanu stopped paying the lease rent. Lal sued him for the payment of rent. Quzi then gave a notice revoking his guarantee for the remaining three years.a)This is a continuing guarantee.b)This is a specific guarantee.c)This is a case of indemnity.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Sec. 126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as a contract to perform the promise, or discharge the liability of a third person in case of his defaults. Contracts of guarantees may be classified into two types: specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee. However, a guarantee which extends to a series of transactions is called a continuing guarantee. The suretys liability, in this case, would continue till all the transactions are completed or till the guarantor revokes the guarantee as to the future transactions.A continuing guarantee is defined under Section 129 of the Indian Contract Act, 1872. A continuing guarantee is a type of guarantee which applies to a series of transactions. It applies to all the transactions entered into by the principal debtor until it is revoked by the surety. Therefore, bankers always prefer to have a continuing guarantee so that the guarantors liability is not limited to the original advances and would also extend to all subsequent debts.The most important feature of a continuing guarantee is that it applies to a series of separable, distinct transactions. Therefore, when a guarantee is given for an entire consideration, it cannot be termed as a continuing guarantee.So far as a guarantee given for an existing debt is concerned, it cannot be revoked, as once an offer is accepted it becomes final. However, a continuing guarantee can be revoked for future transactions. In that case, the surety shall be liable for those transactions which have already taken place.After making a payment and discharging the liability of the principal debtor, the surety gets various rights. These rights can be studied under three heads:Rights against the principal debtors: In every contract of guarantee, there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee. This is because the surety has suffered a loss due to the non-fulfilment of promise by the principal debtor and therefore the surety has a right to be compensated by the debtorOn the default of payment by the principal debtor, when the surety pays off the debt of the principal debtor he becomes entitled to claim all the securities which were given by the principal debtor to the creditor. The surety has the right to all securities whether received before or after the creation of the guarantee and it is also immaterial whether the surety has knowledge of those securities or not.Q.Lal gave his house to Tanu on a lease for ten years on a specified lease rent. Quzi guaranteed that Tanu would fulfil his obligations. After seven years, Tanu stopped paying the lease rent. Lal sued him for the payment of rent. Quzi then gave a notice revoking his guarantee for the remaining three years.a)This is a continuing guarantee.b)This is a specific guarantee.c)This is a case of indemnity.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.