GUARANTEE
2 years ago
MY FRIEND WAS THE GUARANTOR FOR SOME LOANS. HE SUDDENLY PASSED AWAY ON 13-3-2021. WHETHER THE GUARANTEE EXTINGUISHED WITH HIS DEATH? HE HAD NO PROPERTY WIN HIS NAME. BUT WHETHER THESE INSTITUTIONS JUSTIFIED TO START LEGAL PROCEEDINGS AGAINST LEGAL HEIRS OF HIM AS OTHER GUARANTORS AVAILABLE?
A.Dear Sir,
The liability of the guarantor extinguishes on his death and no suit can be filed against legal heirs of him.
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A.Hi,
Section 131 in The Indian Contract Act, 1872 talks about the revocation of continuing guarantee by surety’s death. If your friend made a continuing guarantee, then it will be distinguished from his death. The institutions are not justified in starting a legal proceeding against the legal heirs.
Thank you.
Section 131 in The Indian Contract Act, 1872 talks about the revocation of continuing guarantee by surety’s death. If your friend made a continuing guarantee, then it will be distinguished from his death. The institutions are not justified in starting a legal proceeding against the legal heirs.
Thank you.
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