Section 129 of ICA : Section 129: "Continuing Guarantee"

Explanation using Example

Imagine that a supplier, Mr. Patel, regularly provides raw materials to a small manufacturer, Mr. Gupta, on credit. Mr. Sharma, a friend of Mr. Gupta, gives a guarantee to Mr. Patel that he will be responsible for the payments of Mr. Gupta's purchases up to a limit of ₹1,00,000. Mr. Sharma's guarantee is not for a single transaction but for multiple purchases made by Mr. Gupta over time.

This arrangement is an example of a "continuing guarantee" because Mr. Sharma's liability can extend to multiple transactions between Mr. Patel and Mr. Gupta until the guarantee is revoked or the limit of ₹1,00,000 is reached.