While issuing a guarantee the bank omits to mention the amount and period of the guarantee. Can the bank still be held liable? What would be the extent of liability?

The liability of the bank under a guarantee depends on: the amount of the guarantee and the period of the guarantee These two are important factors to be clearly mentioned in the guarantee issued by the banker, otherwise the bank's liability could be unlimited. Pursuant to the amendment to section 28 of the Indian Contract Act 1872, the limitation period on a contract of guarantee cannot be restricted to less than the period provided under the limitation Act. As such if the guarantee is invoked in time the beneficiary can sue the bank within 30 years in case the beneficiary is a government or municipal body or 3 years in all others cases.