[amp_mcq option1=”Indemnification from the property of the surety with regard to future transactions” option2=”Revocation of the continuing guarantee with regard to future transactions” option3=”The continuing guarantee shall continue in the name of the surety’s heirs” option4=”The continuing guarantee shall be continued by any other person” correct=”option3″]
The correct answer is: C. The continuing guarantee shall continue in the name of the surety’s heirs.
A continuing guarantee is a guarantee that is not limited to a specific transaction. It is a guarantee that continues in effect until the debt is paid in full, or until the guarantee is terminated.
In the event of the surety’s death, the continuing guarantee will continue in effect in the name of the surety’s heirs. This is because the surety’s heirs are considered to be the successors to the surety’s rights and obligations.
The other options are incorrect because:
- Option A is incorrect because the surety’s heirs are not entitled to indemnification from the surety’s property with regard to future transactions. The surety’s heirs are only entitled to indemnification from the surety’s property with regard to transactions that were entered into while the surety was alive.
- Option B is incorrect because the continuing guarantee is not revoked in the event of the surety’s death. The continuing guarantee continues in effect in the name of the surety’s heirs.
- Option D is incorrect because the continuing guarantee cannot be continued by any other person other than the surety’s heirs. The surety’s heirs are the only persons who are entitled to enforce the continuing guarantee.