A guaranty relating to a future liability of the principal, under successive transactions, which either continue his liability or from time to time renew it after it has been satisfied, is called a continuing guaranty.
SuretyshipContinuing Guaranty
Section § 2814
This section explains what a continuing guaranty is. It's a kind of promise to pay future debts of another person that can cover multiple transactions. Even if the original debt is paid off, the guaranty can apply to new debts taken on by the same person.
continuing guaranty future liability successive transactions
Section § 2815
This law means that if someone has given a continuing guaranty, they can cancel it whenever they want, but only for future dealings. However, if there's an ongoing reason or benefit for those future dealings and the guarantor hasn't given that up, the guaranty might still apply.
A continuing guaranty may be revoked at any time by the guarantor, in respect to future transactions, unless there is a continuing consideration as to such transactions which he does not renounce.
continuing guaranty revoke guaranty future transactions
