G.R. No.

145578

JOSE C. TUPAZ IV
PETRONILA C. TUPAZ,
Petitioners,
- versus –

THE COURT OF APPEALS and

BANK OF THE PHILIPPINE Promulgated:
ISLANDS,
Respondents.

Jose Tupaz signed in his personal capacity a trust receipt in favor of BPI of which the dorsal side
provides thus:

I/We, jointly and severally, agree and promise to pay to you x x x   my/our liability in
this guarantee shall be DIRECT AND IMMEDIATE, without any need whatsoever on your part to take any
steps or exhaust any legal remedies.

Issue

Whether Jose Tupaz was a surety or guarantor.

Held

Guarantor.

The clause, “we jointly and severally agree and undertake,” refers to the undertaking of the two
(2) parties who are to sign it or to the liability existing between themselves. It does not refer to the
undertaking between either one or both of them on the one hand and the petitioner on the other with
respect to the liability described under the trust receipt. Had there been more than one signatories to
the trust receipt, the solidary liability would exist between the guarantors