When the continuing guarantee can be revoked under the Indian Partnership Act, 1932?
CA Foundation · Business Laws · MTP · June 2024
When the continuing guarantee can be revoked under the Indian Partnership Act, 1932?
Suggested Answer and Working Notes:
Revocation of continuing guarantee (Section 38 of the Indian Partnership Act,1932): According to section 38, a continuing guarantee given to a firm or to third party in respect of the transaction of a firm is, in the absence of an agreement to the contrary, revoked as to future transactions from the date of any change in the constitution of the firm. Such change may occur by the death, or retirement of a partner, or by introduction of a new partner.
Topics: The Indian Partnership Act, 1932
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