1. By giving the creditor notice of the revocation: Section 130 of the Contract Act states that a continuing guarantee may be revoked by the surety at any time with regard to future transactions by sending the creditor notice to this effect. As a result, the revocation releases the surety from liability for any transaction that is completed after the notice or revocation. The surety is still responsible for the already-completed transactions, though.
2. By death of surety: In accordance with Section 131, the passing of the surety revokes a continuing guarantee with respect to future transactions in the absence of a contract to the contrary. As a result, the guarantee is automatically cancelled upon the surety's passing, and notifying the creditor of the death is not required. The surety's legal heirs are still accountable for transactions that were already completed before the surety's death, it should be highlighted that the revocation by death of the surety only applies to future transactions.
3. By surety's release under various conditions
A continuing guarantee is likewise nullified in any situations where a surety is released from responsibility, including:
a). Via innovation (Section 62)
b). By contract terms that differ (Section 133)
c). Through the principal debtor's pardon or discharge (Section 134)
d). When the creditor and major debtor reach an agreement (Section 135)
e). By a creditor's action or inaction limiting the surety's ultimate remedy (Section 139)
f). By lack of security (Section 141) (Section 141)
g). By declaring a contract void (Sections 142, 143, 144).
