Indian Contract Act Section 131 — Revocation of continuing guarantee by surety’s death
CHAPTER VIII OF INDEMNITY AND GUARANTEE
Commercial / Corporate
Summary
The death of the surety automatically cancels a continuing guarantee, but only for transactions that happen after the death. This applies unless the guarantee agreement says something different. Any transactions that already took place before the surety's death are not affected by this rule.
Official Text
The death of the surety operates, in the absence of any contract to the contrary, as a revocation of a continuing guarantee, so far as regards future transactions.