Section 38 Indian Partnership Act 1932

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.