Section 38 Indian Partnership Act

Section 38 of the Indian Partnership Act 1932 is about Revocation of continuing guarantee by change in firm. It is under CHAPTER V (Incoming And Outgoing Partners) of the Act.

Revocation of continuing guarantee by change in firm.

A continuing guarantee given to a firm, or to a third party in respect of the transactions of a firm, is, in the absence of agreement to the contrary, revoked as to future transactions from the date of any change in the constitution of the firm.