FROM BEGINNING UNTIL 2057

BONUS QUESTIONS:

What is the unilateral character of guaranty?

Answer: The unilateral character of guaranty states that, the contract of guarantee is constituted for
the benefit of the creditor and not the principal debtor.

ART. 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)

ART. 2052. A guaranty cannot exist without a valid obligation. Nevertheless, a guaranty may be
constituted to guar- antee the performance of a voidable or an unenforceable contract. It may also
guarantee a natural obligation. (1824a) (must be in writing)

With respect to voidable or unenforceable contracts, the guarantor may set up against the creditor all
the defenses which pertain to the principal debtor and are inherent in the debt, but not those that are
purely personal to the debtor. (Art. 2081.)

Future debts, even if the amount is not yet known, may be guaranteed but there can be no claim
against the guarantor until the amount of the debt is ascertained or fixed and demandable. The
reason is that a contract of guaranty is subsidiary.

FIDELIZA J. AGLIBOT vs. INGERSOL L. SANTIA

There was no express agreement to constitute a guaranty. There was no written agreement, note or
memorandum signifying that Aglibot signed a contract as a guarantor. Under Statute of Frauds, froa
contract to be enforceable, it must be in writing.

Why Aglibot is an accommodation party?

- The appellate court ruled that by issuing her own post-dated checks, Aglibot thereby bound
herself personally and solidarily to pay Santia, and dismissed her claim that she issued her
said checks in her official capacity as PLCC’s

Aglibot signed the promissory note on behalf of PLCC as manager and nowhere does it appear that
she signed as an accommodation party. The RTC further ruled that what Aglibot agreed to do by
issuing her personal checks was merely to guarantee the indebtedness of PLCC, and thus she must
be accorded the benefit of excussion- prior exhaustion of the property of the debtor- as provided
under Article 2058 of the Civil Code.

QUALIFICATIONS TO BECOME A GUARANTOR ARTICLE 2056:

- A person who possesses INTEGRITY
- capacity to bind himself, and
- sufficient property to answer for the obligation which he guarantees.
Can the debtor and the guarantor be the same person: NO, because it is superfluous.

DIFFERENTIATE CONTRACT OF GUARANTY AND SURETY