Classification of Guaranty

1.In the broad sense:

a.
personal:
the guaranty is the
credit
given by the person who guarantees thefulfillment of the principal
obligation (guarantor)
b.
real:
the guaranty is
property
. If the guaranty is immovable property: real mortgageor antichresis;
If the guaranty is movable property: pledge or chatter mortgage2 . A s
to origin:
a.
conventional:
by agreement of the parties
b.
legal:
imposed by law
c.
judicial:
required by a court to guarantee the eventual right of one of the
parties in acase3 . A s t o c o n s i d e r a t i o n :
a.
gratuitous:
the guarantor does not receive anything for acting as guarantor
b.
onerous:
the guarantor receives valuable consideration for acting as
guarantor4.As to the person guaranteed:
a.
single:
constituted solely to guarantee or secure performance of the
principalobligation
S
h
e
r
y
l
I
I
D
2
0
0
2
P
A
G
E
1
2

b.
double or sub-guaranty:
constituted to secure fulfillment of a prior guaranty;guarantees the
obligation of a guarantor5 . A s t o s c o p e a n d e x t e n t :
a.
definite:
limited to the principal obligation only or to a specific portion
thereof
b.
indefinite or simple:
includes not only the principal obligation but also all
itsaccessories, including judicial costs.
Second Paragraph of Art. 2047: Suretyship
If a person binds himself solidarily with the principal debtor, it is
a contract of suretyship. Theguarantor is called a surety. Suretyship
is governed by Articles 1207 to 1222 of the Civil Code onsolidary
obligations. Suretyship dispenses with certain legal
requirements/conditions precedent forproceeding against a guarantor.
What is the difference between passive solidarity
(solidarity among debtors) andsuretyship?
Review of oblicon: According to Tolentino, the two are
similar
in the following ways:
1.

A solidary debtor, like a surety,

stands for some other person.
2.
Both debtor and surety, after payment, may require that they be
reimbursed.
The difference is that the lender cannot go after the surety right
away. There has to be
default
onthe part of the principal debtor before the surety becomes liable.
If it were mere solidarity amongdebtors, the creditor can go after
any of the solidary debtors on due date.
Nature of a Suretys Undertaking
1.
Contractual and Accessory BUT Direct
:
The contractual obligation of the surety is merelyan accessory or
collateral to the obligation contracted by the principal. BUT, his
liability to thecreditor is direct, primary, and absolute.
2.
Liability is limited by the terms of
the contract
:
The extent of a suretys liability isdetermined only by the terms of
the contract and cannot be extended by implication.
3.
Liability arises only if principal debtor
is held liable
:
If the principal debtor and thesurety are held liable, their
liability to pay the creditor would be solidary. But, the surety
doesnot incur liability unless and until the principal debtor is held
liable.a.A surety is bound by a judgment against the principal
even though the party was not aparty to the
Classification of Guaranty
1.In the broad sense:
a.
personal:
the guaranty is the
credit
given by the person who guarantees thefulfillment of the principal
obligation (guarantor)
b.
real:
the guaranty is
property
. If the guaranty is immovable property: real mortgageor antichresis;
If the guaranty is movable property: pledge or chatter mortgage2 . A s
to origin:
a.
conventional:
by agreement of the parties
b.
legal:
imposed by law
c.

judicial:
required by a court to guarantee the eventual right of one of the
parties in acase3 . A s t o c o n s i d e r a t i o n :
a.
gratuitous:
the guarantor does not receive anything for acting as guarantor
b.
onerous:
the guarantor receives valuable consideration for acting as
guarantor4.As to the person guaranteed:
a.
single:
constituted solely to guarantee or secure performance of the
principalobligation
S
h
e
r
y
l
I
I
D
2
0
0
2
P
A
G
E
1
2

b.
double or sub-guaranty:
constituted to secure fulfillment of a prior guaranty;guarantees the
obligation of a guarantor5 . A s t o s c o p e a n d e x t e n t :
a.
definite:
limited to the principal obligation only or to a specific portion
thereof
b.
indefinite or simple:
includes not only the principal obligation but also all
itsaccessories, including judicial costs.
Second Paragraph of Art. 2047: Suretyship
If a person binds himself solidarily with the principal debtor, it is
a contract of suretyship. Theguarantor is called a surety. Suretyship
is governed by Articles 1207 to 1222 of the Civil Code onsolidary
obligations. Suretyship dispenses with certain legal
requirements/conditions precedent forproceeding against a guarantor.
What is the difference between passive solidarity
(solidarity among debtors) andsuretyship?
Review of oblicon: According to Tolentino, the two are
similar
in the following ways:
1.
A solidary debtor, like a surety,
stands for some other person.
2.
Both debtor and surety, after payment, may require that they be
reimbursed.
The difference is that the lender cannot go after the surety right
away. There has to be
default
onthe part of the principal debtor before the surety becomes liable.
If it were mere solidarity amongdebtors, the creditor can go after
any of the solidary debtors on due date.
Nature of a Suretys Undertaking
1.
Contractual and Accessory BUT Direct
:

The contractual obligation of the surety is merelyan accessory or

collateral to the obligation contracted by the principal. BUT, his
liability to thecreditor is direct, primary, and absolute.
2.
Liability is limited by the terms of
the contract
:
The extent of a suretys liability isdetermined only by the terms of
the contract and cannot be extended by implication.
3.
Liability arises only if principal debtor
is held liable
:
If the principal debtor and thesurety are held liable, their
liability to pay the creditor would be solidary. But, the surety
doesnot incur liability unless and until the principal debtor is held
liable.a.A surety is bound by a judgment against the principal
even though the party was not aparty to the
Classification of Guaranty
1.In the broad sense:
a.
personal:
the guaranty is the
credit
given by the person who guarantees thefulfillment of the principal
obligation (guarantor)
b.
real:
the guaranty is
property
. If the guaranty is immovable property: real mortgageor antichresis;
If the guaranty is movable property: pledge or chatter mortgage2 . A s
to origin:
a.
conventional:
by agreement of the parties
b.
legal:
imposed by law
c.
judicial:
required by a court to guarantee the eventual right of one of the
parties in acase3 . A s t o c o n s i d e r a t i o n :
a.
gratuitous:
the guarantor does not receive anything for acting as guarantor
b.
onerous:
the guarantor receives valuable consideration for acting as
guarantor4.As to the person guaranteed:
a.
single:
constituted solely to guarantee or secure performance of the
principalobligation

S
I
2
G

h
I
0
E

e
D
0

2
1

P
2

b.
double or sub-guaranty:
constituted to secure fulfillment of a prior guaranty;guarantees the
obligation of a guarantor5 . A s t o s c o p e a n d e x t e n t :
a.

definite:
limited to the principal obligation only or to a specific portion
thereof
b.
indefinite or simple:
includes not only the principal obligation but also all
itsaccessories, including judicial costs.
Second Paragraph of Art. 2047: Suretyship
If a person binds himself solidarily with the principal debtor, it is
a contract of suretyship. Theguarantor is called a surety. Suretyship
is governed by Articles 1207 to 1222 of the Civil Code onsolidary
obligations. Suretyship dispenses with certain legal
requirements/conditions precedent forproceeding against a guarantor.
What is the difference between passive solidarity
(solidarity among debtors) andsuretyship?
Review of oblicon: According to Tolentino, the two are
similar
in the following ways:
1.
A solidary debtor, like a surety,
stands for some other person.
2.
Both debtor and surety, after payment, may require that they be
reimbursed.
The difference is that the lender cannot go after the surety right
away. There has to be
default
onthe part of the principal debtor before the surety becomes liable.
If it were mere solidarity amongdebtors, the creditor can go after
any of the solidary debtors on due date.
Nature of a Suretys Undertaking
1.
Contractual and Accessory BUT Direct
:
The contractual obligation of the surety is merelyan accessory or
collateral to the obligation contracted by the principal. BUT, his
liability to thecreditor is direct, primary, and absolute.
2.
Liability is limited by the terms of
the contract
:
The extent of a suretys liability isdetermined only by the terms of
the contract and cannot be extended by implication.
3.
Liability arises only if principal debtor
is held liable
:
If the principal debtor and thesurety are held liable, their
liability to pay the creditor would be solidary. But, the surety
doesnot incur liability unless and until the principal debtor is held
liable.a.A surety is bound by a judgment against the principal
even though the party was not aparty to the
Classification of Guaranty
1.In the broad sense:
a.

personal:
the guaranty is the
credit
given by the person who guarantees thefulfillment of the principal
obligation (guarantor)
b.
real:
the guaranty is
property
. If the guaranty is immovable property: real mortgageor antichresis;
If the guaranty is movable property: pledge or chatter mortgage2 . A s
to origin:
a.
conventional:
by agreement of the parties
b.
legal:
imposed by law
c.
judicial:
required by a court to guarantee the eventual right of one of the
parties in acase3 . A s t o c o n s i d e r a t i o n :
a.
gratuitous:
the guarantor does not receive anything for acting as guarantor
b.
onerous:
the guarantor receives valuable consideration for acting as
guarantor4.As to the person guaranteed:
a.
single:
constituted solely to guarantee or secure performance of the
principalobligation
S
h
e
r
y
l
I
I
D
2
0
0
2
P
A
G
E
1
2

b.
double or sub-guaranty:
constituted to secure fulfillment of a prior guaranty;guarantees the
obligation of a guarantor5 . A s t o s c o p e a n d e x t e n t :
a.
definite:
limited to the principal obligation only or to a specific portion
thereof
b.
indefinite or simple:
includes not only the principal obligation but also all
itsaccessories, including judicial costs.
Second Paragraph of Art. 2047: Suretyship
If a person binds himself solidarily with the principal debtor, it is
a contract of suretyship. Theguarantor is called a surety. Suretyship
is governed by Articles 1207 to 1222 of the Civil Code onsolidary
obligations. Suretyship dispenses with certain legal
requirements/conditions precedent forproceeding against a guarantor.
What is the difference between passive solidarity
(solidarity among debtors) andsuretyship?
Review of oblicon: According to Tolentino, the two are
similar
in the following ways:
1.

A solidary debtor, like a surety,

stands for some other person.
2.
Both debtor and surety, after payment, may require that they be
reimbursed.
The difference is that the lender cannot go after the surety right
away. There has to be
default
onthe part of the principal debtor before the surety becomes liable.
If it were mere solidarity amongdebtors, the creditor can go after
any of the solidary debtors on due date.
Nature of a Suretys Undertaking
1.
Contractual and Accessory BUT Direct
:
The contractual obligation of the surety is merelyan accessory or
collateral to the obligation contracted by the principal. BUT, his
liability to thecreditor is direct, primary, and absolute.
2.
Liability is limited by the terms of
the contract
:
The extent of a suretys liability isdetermined only by the terms of
the contract and cannot be extended by implication.
3.
Liability arises only if principal debtor
is held liable
:
If the principal debtor and thesurety are held liable, their
liability to pay the creditor would be solidary. But, the surety
doesnot incur liability unless and until the principal debtor is held
liable.a.A surety is bound by a judgment against the principal
even though the party was not aparty to the
Classification of Guaranty
1.In the broad sense:
a.
personal:
the guaranty is the
credit
given by the person who guarantees thefulfillment of the principal
obligation (guarantor)
b.
real:
the guaranty is
property
. If the guaranty is immovable property: real mortgageor antichresis;
If the guaranty is movable property: pledge or chatter mortgage2 . A s
to origin:
a.
conventional:
by agreement of the parties
b.
legal:
imposed by law
c.

judicial:
required by a court to guarantee the eventual right of one of the
parties in acase3 . A s t o c o n s i d e r a t i o n :
a.
gratuitous:
the guarantor does not receive anything for acting as guarantor
b.
onerous:
the guarantor receives valuable consideration for acting as
guarantor4.As to the person guaranteed:
a.
single:
constituted solely to guarantee or secure performance of the
principalobligation
S
h
e
r
y
l
I
I
D
2
0
0
2
P
A
G
E
1
2

b.
double or sub-guaranty:
constituted to secure fulfillment of a prior guaranty;guarantees the
obligation of a guarantor5 . A s t o s c o p e a n d e x t e n t :
a.
definite:
limited to the principal obligation only or to a specific portion
thereof
b.
indefinite or simple:
includes not only the principal obligation but also all
itsaccessories, including judicial costs.
Second Paragraph of Art. 2047: Suretyship
If a person binds himself solidarily with the principal debtor, it is
a contract of suretyship. Theguarantor is called a surety. Suretyship
is governed by Articles 1207 to 1222 of the Civil Code onsolidary
obligations. Suretyship dispenses with certain legal
requirements/conditions precedent forproceeding against a guarantor.
What is the difference between passive solidarity
(solidarity among debtors) andsuretyship?
Review of oblicon: According to Tolentino, the two are
similar
in the following ways:
1.
A solidary debtor, like a surety,
stands for some other person.
2.
Both debtor and surety, after payment, may require that they be
reimbursed.
The difference is that the lender cannot go after the surety right
away. There has to be
default
onthe part of the principal debtor before the surety becomes liable.
If it were mere solidarity amongdebtors, the creditor can go after
any of the solidary debtors on due date.
Nature of a Suretys Undertaking
1.
Contractual and Accessory BUT Direct
:

The contractual obligation of the surety is merelyan accessory or

collateral to the obligation contracted by the principal. BUT, his
liability to thecreditor is direct, primary, and absolute.
2.
Liability is limited by the terms of
the contract
:
The extent of a suretys liability isdetermined only by the terms of
the contract and cannot be extended by implication.
3.
Liability arises only if principal debtor
is held liable
:
If the principal debtor and thesurety are held liable, their
liability to pay the creditor would be solidary. But, the surety
doesnot incur liability unless and until the principal debtor is held
liable.a.A surety is bound by a judgment against the principal
even though the party was not aparty to the
Classification of Guaranty
1.In the broad sense:
a.
personal:
the guaranty is the
credit
given by the person who guarantees thefulfillment of the principal
obligation (guarantor)
b.
real:
the guaranty is
property
. If the guaranty is immovable property: real mortgageor antichresis;
If the guaranty is movable property: pledge or chatter mortgage2 . A s
to origin:
a.
conventional:
by agreement of the parties
b.
legal:
imposed by law
c.
judicial:
required by a court to guarantee the eventual right of one of the
parties in acase3 . A s t o c o n s i d e r a t i o n :
a.
gratuitous:
the guarantor does not receive anything for acting as guarantor
b.
onerous:
the guarantor receives valuable consideration for acting as
guarantor4.As to the person guaranteed:
a.
single:
constituted solely to guarantee or secure performance of the
principalobligation

S
I
2
G

h
I
0
E

e
D
0

2
1

P
2

b.
double or sub-guaranty:
constituted to secure fulfillment of a prior guaranty;guarantees the
obligation of a guarantor5 . A s t o s c o p e a n d e x t e n t :
a.

definite:
limited to the principal obligation only or to a specific portion
thereof
b.
indefinite or simple:
includes not only the principal obligation but also all
itsaccessories, including judicial costs.
Second Paragraph of Art. 2047: Suretyship
If a person binds himself solidarily with the principal debtor, it is
a contract of suretyship. Theguarantor is called a surety. Suretyship
is governed by Articles 1207 to 1222 of the Civil Code onsolidary
obligations. Suretyship dispenses with certain legal
requirements/conditions precedent forproceeding against a guarantor.
What is the difference between passive solidarity
(solidarity among debtors) andsuretyship?
Review of oblicon: According to Tolentino, the two are
similar
in the following ways:
1.
A solidary debtor, like a surety,
stands for some other person.
2.
Both debtor and surety, after payment, may require that they be
reimbursed.
The difference is that the lender cannot go after the surety right
away. There has to be
default
onthe part of the principal debtor before the surety becomes liable.
If it were mere solidarity amongdebtors, the creditor can go after
any of the solidary debtors on due date.
Nature of a Suretys Undertaking
1.
Contractual and Accessory BUT Direct
:
The contractual obligation of the surety is merelyan accessory or
collateral to the obligation contracted by the principal. BUT, his
liability to thecreditor is direct, primary, and absolute.
2.
Liability is limited by the terms of
the contract
:
The extent of a suretys liability isdetermined only by the terms of
the contract and cannot be extended by implication.
3.
Liability arises only if principal debtor
is held liable
:
If the principal debtor and thesurety are held liable, their
liability to pay the creditor would be solidary. But, the surety
doesnot incur liability unless and until the principal debtor is held
liable.a.A surety is bound by a judgment against the principal
even though the party was not aparty to the
Classification of Guaranty
1.In the broad sense:
a.

personal:
the guaranty is the
credit
given by the person who guarantees thefulfillment of the principal
obligation (guarantor)
b.
real:
the guaranty is
property
. If the guaranty is immovable property: real mortgageor antichresis;
If the guaranty is movable property: pledge or chatter mortgage2 . A s
to origin:
a.
conventional:
by agreement of the parties
b.
legal:
imposed by law
c.
judicial:
required by a court to guarantee the eventual right of one of the
parties in acase3 . A s t o c o n s i d e r a t i o n :
a.
gratuitous:
the guarantor does not receive anything for acting as guarantor
b.
onerous:
the guarantor receives valuable consideration for acting as
guarantor4.As to the person guaranteed:
a.
single:
constituted solely to guarantee or secure performance of the
principalobligation
S
h
e
r
y
l
I
I
D
2
0
0
2
P
A
G
E
1
2

b.
double or sub-guaranty:
constituted to secure fulfillment of a prior guaranty;guarantees the
obligation of a guarantor5 . A s t o s c o p e a n d e x t e n t :
a.
definite:
limited to the principal obligation only or to a specific portion
thereof
b.
indefinite or simple:
includes not only the principal obligation but also all
itsaccessories, including judicial costs.
Second Paragraph of Art. 2047: Suretyship
If a person binds himself solidarily with the principal debtor, it is
a contract of suretyship. Theguarantor is called a surety. Suretyship
is governed by Articles 1207 to 1222 of the Civil Code onsolidary
obligations. Suretyship dispenses with certain legal
requirements/conditions precedent forproceeding against a guarantor.
What is the difference between passive solidarity
(solidarity among debtors) andsuretyship?
Review of oblicon: According to Tolentino, the two are
similar
in the following ways:
1.

A solidary debtor, like a surety,

stands for some other person.
2.
Both debtor and surety, after payment, may require that they be
reimbursed.
The difference is that the lender cannot go after the surety right
away. There has to be
default
onthe part of the principal debtor before the surety becomes liable.
If it were mere solidarity amongdebtors, the creditor can go after
any of the solidary debtors on due date.
Nature of a Suretys Undertaking
1.
Contractual and Accessory BUT Direct
:
The contractual obligation of the surety is merelyan accessory or
collateral to the obligation contracted by the principal. BUT, his
liability to thecreditor is direct, primary, and absolute.
2.
Liability is limited by the terms of
the contract
:
The extent of a suretys liability isdetermined only by the terms of
the contract and cannot be extended by implication.
3.
Liability arises only if principal debtor
is held liable
:
If the principal debtor and thesurety are held liable, their
liability to pay the creditor would be solidary. But, the surety
doesnot incur liability unless and until the principal debtor is held
liable.a.A surety is bound by a judgment against the principal
even though the party was not aparty to the
Classification of Guaranty
1.In the broad sense:
a.
personal:
the guaranty is the
credit
given by the person who guarantees thefulfillment of the principal
obligation (guarantor)
b.
real:
the guaranty is
property
. If the guaranty is immovable property: real mortgageor antichresis;
If the guaranty is movable property: pledge or chatter mortgage2 . A s
to origin:
a.
conventional:
by agreement of the parties
b.
legal:
imposed by law
c.

judicial:
required by a court to guarantee the eventual right of one of the
parties in acase3 . A s t o c o n s i d e r a t i o n :
a.
gratuitous:
the guarantor does not receive anything for acting as guarantor
b.
onerous:
the guarantor receives valuable consideration for acting as
guarantor4.As to the person guaranteed:
a.
single:
constituted solely to guarantee or secure performance of the
principalobligation
S
h
e
r
y
l
I
I
D
2
0
0
2
P
A
G
E
1
2

b.
double or sub-guaranty:
constituted to secure fulfillment of a prior guaranty;guarantees the
obligation of a guarantor5 . A s t o s c o p e a n d e x t e n t :
a.
definite:
limited to the principal obligation only or to a specific portion
thereof
b.
indefinite or simple:
includes not only the principal obligation but also all
itsaccessories, including judicial costs.
Second Paragraph of Art. 2047: Suretyship
If a person binds himself solidarily with the principal debtor, it is
a contract of suretyship. Theguarantor is called a surety. Suretyship
is governed by Articles 1207 to 1222 of the Civil Code onsolidary
obligations. Suretyship dispenses with certain legal
requirements/conditions precedent forproceeding against a guarantor.
What is the difference between passive solidarity
(solidarity among debtors) andsuretyship?
Review of oblicon: According to Tolentino, the two are
similar
in the following ways:
1.
A solidary debtor, like a surety,
stands for some other person.
2.
Both debtor and surety, after payment, may require that they be
reimbursed.
The difference is that the lender cannot go after the surety right
away. There has to be
default
onthe part of the principal debtor before the surety becomes liable.
If it were mere solidarity amongdebtors, the creditor can go after
any of the solidary debtors on due date.
Nature of a Suretys Undertaking
1.
Contractual and Accessory BUT Direct
:

The contractual obligation of the surety is merelyan accessory or

collateral to the obligation contracted by the principal. BUT, his
liability to thecreditor is direct, primary, and absolute.
2.
Liability is limited by the terms of
the contract
:
The extent of a suretys liability isdetermined only by the terms of
the contract and cannot be extended by implication.
3.
Liability arises only if principal debtor
is held liable
:
If the principal debtor and thesurety are held liable, their
liability to pay the creditor would be solidary. But, the surety
doesnot incur liability unless and until the principal debtor is held
liable.a.A surety is bound by a judgment against the principal
even though the party was not aparty to the