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GUARANTY

TITLE XV

Definition of guaranty; Characteristics of


the contract; Governing law

Article 2047. By guaranty a person, called the


guarantor,

binds himself to the creditor to fulfill the obligation of the


principal debtor

in case the latter should fail to do so.

If a person binds himself solidarily with the principal


debtor,

the provisions of Section 4, Chapter 3, Title I of this Book


shall be observed.
In such case the contract is called a suretyship. (1822a)

Guaranty generally gratuitous; Cause of


contract of guaranty

Article 2048. A guaranty is gratuitous,

unless there is a stipulation to the contrary. (n)

Married woman as guarantor

Article 2049. A married woman

may guarantee an obligation without the husband's

consent,

but shall not thereby bind the conjugal partnership,

except in cases provided by law. (n)

Guaranty undertaken without knowledge of


debtor; rights of 3rd person who pays

Article 2050. If a guaranty is entered into

without the knowledge or consent, or


against the will of the principal debtor,

the provisions of articles 1236 and 1237 shall apply. (n)

Article 1236. The creditor is not bound to accept payment or


performance by a third person who has no interest in the fulfillment of
the obligation, unless there is a stipulation to the contrary.
Whoever pays for another may demand from the debtor what he
has paid, except that if he paid without the knowledge or against the
will of the debtor, he can recover only insofar as the payment has
been beneficial to the debtor. (1158a)
Article 1237. Whoever pays on behalf of the debtor without the
knowledge or against the will of the latter, cannot compel the creditor
to subrogate him in his rights, such as those arising from a mortgage,
guaranty, or penalty. (1159a)

Guaranty by reason of origin; Double or


sub-guaranty

Article 2051. A guaranty may be

conventional,
legal or judicial,
gratuitous, or
by onerous title.

It may also be constituted,

not only in favor of the principal debtor,


but also in favor of the other guarantor,

with the latter's consent, or


without his knowledge, or
even over his objection. (1823)

Necessity of valid principal obligation;


guaranty of voidable, unenforceable, and
natural obligations

Article 2052. A guaranty cannot exist without a valid


obligation.

Nevertheless, a guaranty may be constituted

to guarantee the performance of a voidable or an


unenforceable contract.

It may also guarantee a natural obligation. (1824a)

Guaranty of future debts; Guaranty of


conditional obligations

Article 2053. A guaranty may also be given as


security for future debts,

there can be no claim against the guarantor

the amount of which is not yet known;

until the debt is liquidated.

A conditional obligation may also be secured.


(1825a)

Guarantors liability cannot exceed principal


obligation; Principals liability may exceed
guarantors obligation

Article 2054. A guarantor may bind himself for less,

both as regards

but not for more than the principal debtor,


the amount and
the onerous nature of the conditions.

Should he have bound himself for more,

his obligations shall be reduced to the limits of that of the


debtor. (1826)

Guaranty not presumed; guaranty covered


by the statute of frauds; guaranty strictly
construed

Article 2055. A guaranty is not presumed;

it must be express and


cannot extend to more than what is stipulated therein.

If it be simple or indefinite,

it shall compromise

not only the principal obligation,


but also all its accessories,

including the judicial costs, provided with respect to the latter,

that the guarantor shall only be liable for those costs incurred after he has
been judicially required to pay. (1827a)

Qualifications of guarantor

Article 2056. One who is obliged to furnish a


guarantor

shall present a person who possesses

integrity,
capacity to bind himself, and
sufficient property to answer for the obligation which he
guarantees.

The guarantor shall be subject to the jurisdiction of


the court of the place where this obligation is to be
complied with. (1828a)

Effect of subsequent loss of required


qualifications; Selection of guarantor

Article 2057. If the guarantor

should be convicted in first instance of a crime involving


dishonesty or
should become insolvent,

the creditor may demand another who has all the


qualifications required in the preceding article.
The case is excepted where the creditor has

required and stipulated that a specified person should be


the guarantor. (1829a)