Section 129 in Jammu and Kashmir Contract Act, Svt. 1977 (1920 A.D.)
129. Continuing guarantee
A guarantee which extends to a series of transactions is called a."continuing guarantee'.Illustrations(a)A, in consideration that B will employ C in collecting the rents of B's zamindari, promises B to be responsible to the amount of 5,000 rupees, for the due collection and payment by C of those rents. This is a continuing guarantee.(b)A guarantees payment to B, a tea-dealer, to the amount of £ 100 for any tea he may from time to time supply to C. B supplies C with tea value above of £ 100, and C pays B for it. Afterwards B supplies C with tea to the value of 200. C fails to pay. The guarantee given by A was a continuing guarantee, and he is accordingly liable to B to the extent of £ 100.(c)A guarantees payment to B of the price of five sacks of flour to be delivered by B to C and to be paid for in a month. B delivers five sacks to C. C pays for them. Afterwards B delivers four sacks to C, which C does not pay for. The guarantee given by A was not a continuing guarantee, and, accordingly, he is not liable for the price of the four sacks.
