Specific Guarantee: A specific guarantee is for a single debt or any specified transaction. A continuing guarantee applies to all the transactions entered into by the principal debtor until it is revoked by the surety.

What does continuing guarantee mean?

A continuing security clause achieves this by providing that the guarantee shall remain a continuing security for the principal debtor’s obligations to the creditor at any time and that it shall not be satisfied or otherwise affected by any repayment from time to time of the whole or part of the sums due and owing by …

What are the different types of guarantee?

Types of Guarantees

• Bid/Tender Guarantee. Issued in support of an exporter’s bid to supply goods or services and, if successful, ensures compensation in the event that the contract is not signed.
• Performance Guarantee.
• Advance Payment Guarantee.
• Warranty Guarantee.
• Retention Guarantee.

  Can a continuing guarantee be revoked?

  A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor. Afterwards, at the end of three months, A revokes the guarantee. This revocation discharges A from all liability to B for any subsequent discount.

  What do you know by continuing guarantee?

  A continuing guaranty is an agreement by the guarantor to be liable for the obligations of someone else to the lender, even if there are several different obligations that are made, renewed or repaid over time. In contrast, a specific guaranty is limited only to one individual transaction.

  What are the four different types of guarantees?

  Types of Guarantees

  1. Personal guarantee. A personal guarantee is a promise to repay liabilities that is made by an individual on behalf of another individual or organization.
  2. Bank guarantee.
  3. Financial guarantee.

  What’s the difference between a specific and continuing Guaranty?

  When does a specific guarantee come to an end?

  Specific Guarantee: When a guarantee is given for a single transaction or debt, it is called a specific or simple guarantee. It comes to an end when the debt is duly discharged or the promise is duly performed. Continuing Guarantee: It is a guarantee for a series of transactions.

  When is a guarantee discharged in a contract?

  A specific guarantee is said to be discharged when the debt is repaid or the promise is performed. Continuing Guarantee: A guarantee which is given for a series of transactions is known as continuing guarantee. In the case of continuing guarantee, the guarantor’s liability is for all the transactions and it is not discharged until revoked.

  What’s the difference between a warranty and a guarantee?

  The difference between a warranty and a guarantee are a warranty is a guarantee for a specific amount of time. A guarantee is an agreement. What is the difference between warrenty and guarantee?