Malaysia legislation
Section 82
Section 82
“Continuing guarantee”
A guarantee which extends to a series of transactions is called a “continuing guarantee”.
(a)
A, in consideration that B will employ C in collecting the rents of B’s estate, promises B to be responsible to the amount of RM5,000, 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 RM1,000 for any tea he may from time to time supply to C. B supplies C with tea to above the value of RM1,000, and C pays B for it. Afterwards, B supplies C with tea to the value of RM2,000. C fails to pay. The guarantee given by A was a continuing guarantee, and he is accordingly liable to B to the extent of
RM1,000.
(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.
Revocation of continuing guarantee