धारा 86

Section 86 of the Indian Contract Act, 1872, addresses the revocation of a continuing guarantee by the surety. A continuing guarantee is a guarantee that extends to a series of transactions. The section states: 'A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor.' This means that a surety can revoke a continuing guarantee at any time, but this revocation only affects future transactions and does not impact the surety's liability for past transactions. The notice of revocation must be given to the creditor, and once the creditor receives this notice, they can no longer rely on the guarantee for any new transactions. This provision gives the surety a degree of control over their potential liabilities and allows them to limit their exposure to risk.