Revocation of continuing guarantee by surety’s death.— The death of the surety operates, in the absence of any contract to the contrary, as a revocation of a continuing guarantee, so far as regards future transactions.
Revocation of continuing guarantee by surety’s death
When a surety (person who gives a guarantee) dies, their continuing guarantee automatically ends for all future transactions, unless there is an agreement that says otherwise.
Example
A promised to guarantee his friend’s loan. After A died, the bank cannot ask his family to pay for any new loans, unless A had agreed in writing that the guarantee would continue even after his death.