IV.

GUARANTY A. Nature and Extent of Guaranty (Art. 2047 to Art. 2057) 1. Nature of the Contract Ong vs. PCIB GR. No. 160466, January 17, 2005 Machetti vs. Hospicio de San Jose, 43 Phil 297 Castelvi vs. Sellner, 41 Phil. 142 Zobel vs. Ca, G.R. No. 113931, May 6, 1998 Philam Guaranty vs. Ramos GR No. L-2078, February 28, 1966 2. Characteristics of the Contract Philexport vs. Eusebio 434 SCRA 202 Texas Co. vs. Alonzo, 73 Phil 90 HongKong Shanghai Bank vs. Aldanese, 48 Phil 990 3. Construction of Contract Menzi vs. Chuan, 69 Phil 46 B. Effects of Guaranty right of excussion (Art. 2058, 2060, 2062) Arroyo v. Jungsay, 34 Phil. 590 Willex v. CA, 256 SCRA 428 Varona v. CA, G.R. No. 125625, July 19, 1999 - when the creditor may proceed directly against the guarantor (Art. 2059, 2081, 1280) when guarantor may proceed against debtor before paying (Art. 2071, 2059, 2066)

1. Rights and Remedies of Guarantors a. When guarantor pays (Art. 2066,2067) Philexport v. Eusebio, supra b. Request of third person (Art. 2072) c. Proceeds against co-guarantors (Art. 2073, 2074)

2. Sub-guaranty (Art. 2051, par.2)

a. Excussion (Art. 2058, 2064) b. When guarantor is insolvent (Art. 2075) C. Extinguishment of guaranty (Art. 2076, 1231, 1276, 1280, 2077, 2078, 2079, 2080, 2067, 2061, 2063, 1261) Toh v. Solidbank, 408 SCRA 544; Radio Corp. v. Roa, 62 Phil. 211; Shannon v. Phil. Lumber, 61 Phil. 872; Castelvi v. Sellner, supra D. Legal and judicial bonds (Art. 2082-2084) Velasquez vs. Solidbank Corporation 550 SCRA 119 Auto Corp group vs. Intra Strater Assurance Corp. 556 SCRA 250 Delos Santos vs. Vibar 558 SCRA 437 Bitanga vs. Pyramid Construction 563 SCRA 544 Gateway Electronics Corp. vs. Asiabank Corp. 574 SCRA 698 V. SURETYSHIP A. Nature of Contract (Art. 2047, par. 2) 1. distinguished from solidary debtor (Art 1217 par 2.) 2. subject of the same terms (Art. 1211, 2054) Ynchausti v. Yulo 34 Phil 978 B. Liability (Art. 1216, 1222) C. Extinguishment 1. payment (Art. 1217) 2. novation (Art. 1215) Hospicio de San Jose vs. Fidelity 52 Phil 926 Villa vs. Garcia, 49 Phil 128 Asiatic Petroleum vs. Hizon 45 Phil 532 Mabuhay Insurance vs. CA, March 30, 1970 D. Rights of the Surety (Art. 2066,2067,2071,2079, 2080) Manila Surety v. Almeda, July 31, 1971 Banzon vs. Cruz, June 29, 1972