Malaysia legislation
Section 83
Section 83
A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor.
(a)
A, in consideration of B’s discounting, at A’s request, bills of exchange for C, guarantees to B, for twelve months, the due payment of all such bills to the extent of RM5,000. B discounts bills for C to the extent of RM2,000.
Afterwards, at the end of three months, A revokes the guarantee. This revocation discharges A from all liability to B for any subsequent discount. But A is liable to B for the RM2,000 on default of C.
(b)
A guarantees to B, to the extent of RM10,000, that C shall pay all the bills that B shall draw upon him. B draws upon C. C accepts the bill. A gives notice of revocation. C dishonours the bill at maturity. A is liable upon his guarantee.
Revocation of continuing guarantee by surety’s death