Document background
The Continuing Guarantee Agreement is a crucial financial instrument in Indian business and banking transactions, providing security for ongoing obligations between parties. This document type is commonly used when a creditor requires additional security for extending credit facilities, particularly in scenarios involving corporate borrowing, project financing, or recurring business transactions. The agreement, structured under Indian law, specifically the Indian Contract Act, 1872, ensures that the guarantee remains valid for multiple transactions over time until formally revoked. It's particularly relevant in situations where the underlying obligations may vary or continue over an extended period, offering creditors additional security while facilitating business operations for principal debtors who might otherwise struggle to secure credit or business opportunities.
