In the absence of a contrary contract, the death of the guarantee serves as a withdrawal of the permanent guarantee of transactions that take place after the death of the guarantee due to the absence of a contract. However, its legal representatives remain responsible for transactions made before his death. However, the estate of the deceased surety company is responsible for transactions that have already taken place during the deceased`s lifetime. Surety`s estate is not responsible for the transactions carried out after the death of the guarantee, even if the creditor was not aware of the death of the guarantee. If the creditor makes a false presentation or with his consent to a substantial fact in the guarantee contract, the contract is cancelled – the client (buyer) is not required to pay the advance in the event of a bank guarantee, so that the funds are used more efficiently; – the buyer obtains reliable partner status in local and international markets, enjoys different partnership opportunities and may require more relevant conditions from partners; – the seller is protected against delays in payment from the buyer and can make sales without delay without requiring a down payment; – The bank guarantee requires less documents, no need for guarantees and, as a result, the customer receives the letter of guarantee in a shorter time and the commission fees for services are also very low. 3. Guarantee of performance of the contract. This guarantee is a guarantee of timely delivery of goods or services in accordance with a contract. It is not always easy to determine the duration of liability in the context of a guarantee. Sometimes a guarantee is limited to a single transaction and is clearly conceived only as a guarantee against a particular standard. On the other hand, as is often the case, it is not that a transaction does not exhaust its faith, but extends to a number of transactions and remains permanent security until it is revoked, either by the action of the parties or by the death of the surety company. It is then called continuous warranty.
A B guarantee of 10,000 aff. is that C must pay for all the goods he has purchased over the next three months. B sells goods worth Rs 6,000 up to C.C is responsible for 6,000 Rs. If goods are sold to C after the retraction decision, A is not responsible. Creditors – The party who has given something of value to loans and who can receive payment for such a cause and to whom the guarantee is given if the repayment of the principal debtor`s debts is guaranteed by more than one person, they are called co-guarantees and they are required to contribute to the payment of the guaranteed debt, as agreed. The release of one of the guarantees by the creditor does not exempt the others and does not absone the guarantee released from its responsibility towards the other guarantees. Therefore, if the payment of a debt or the execution of taxes are guaranteed by co-guarantees and the principal debtor is in default in the execution of his commitment and the creditor therefore obliges only one or more of the co-guarantees to execute the entire contract, the co-secure guarantees are entitled to demand contributions from the other co-guarantees. The main purpose of a guarantee contract is to enable a person to obtain a loan and assets on credit or on employment. The repayment of the loan, the price of goods sold on credit and the good behaviour or honesty of a person employed in a given office are the purposes for which a guarantee may be granted. 6. Guarantee of performance of the warranty. This guarantee plays a quality safety role in delivery on contractual terms.