Revocation of Guarantee Notice
Sometimes, It is of keen importance to involve a third party in an agreement which takes the responsibility for any sort of liability, if made, by the debtor. For instance, if someone wishes to take a loan from the bank then bank demands a guarantor for this. He gives the guarantee about the debtor and signs the document. It ensures the credibility of the debtor. In case, if the debtor fails to provide any guarantor then the loan would not be passed.
Revocation of Guarantee:
When the guarantor wishes to cancel the guarantee due to any reason, then he has all the rights to do so. Cancelling of the guarantee is termed as revocation of guarantee. At any phase, the guarantor can take a decision about the revocation of guarantee. Either, he may find the debtor is not a trustworthy person so he may think to revoke the guarantee. The guarantor may no longer want to held liable for the activities of the debtor so he can take his guarantee back.
Revocation of Guarantee Notice:
The guarantor can send the document named as “Revocation of Guarantee Notice” to the creditor in order to aware him that for any future liability, he would take any sort of responsibility. The debtor is himself responsible for all liabilities or the creditor may terminate the agreement as per his wish. In case, if the guarantor dies, then the agreement gets automatically revoked. While, if the guarantor is alive then he can simply send this notice to a creditor for abolishing his guarantee.
The significance of the notice:
It is of great concern if the guarantor takes the sagacious step of sending this notice to the creditor. It saves the guarantor from the penalties, punishment or any future liability which may arise due to the breaching of contract by the debtor. It is a professional way of taking safety measure. Guarantor has the right to revoke whenever he wants to. No specific duration is required for this. Even, after few weeks of guarantee, he can revoke the guarantee by finding the debtor to be involved in illegal or other inappropriate activities.