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    Ashlei Coline H. Latorre Law 3

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    Janell Latorre
    The document discusses articles 2057-2061 from the Civil Code of the Philippines relating to guaranty. [1] Article 2057 allows a creditor to demand a new guarantor if the original guarantor is convicted of a dishonest crime or becomes insolvent, except if a specific person was stipulated as the guarantor. [2] Articles 2058-2060 discuss the "benefit of excussion," which means the guarantor cannot be compelled to pay until the creditor exhausts all legal remedies against the debtor, unless certain conditions apply. [3] Article 2061 states that if the guarantor identifies sufficient property of the debtor to the creditor

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    Ashlei Coline H. Latorre Law 3

    Uploaded by

    Janell Latorre
    24 views17 pages
    The document discusses articles 2057-2061 from the Civil Code of the Philippines relating to guaranty. [1] Article 2057 allows a creditor to demand a new guarantor if the original guarantor is convicted of a dishonest crime or becomes insolvent, except if a specific person was stipulated as the guarantor. [2] Articles 2058-2060 discuss the "benefit of excussion," which means the guarantor cannot be compelled to pay until the creditor exhausts all legal remedies against the debtor, unless certain conditions apply. [3] Article 2061 states that if the guarantor identifies sufficient property of the debtor to the creditor

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    Law3report

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    The document discusses articles 2057-2061 from the Civil Code of the Philippines relating to guaranty. [1] Article 2057 allows a creditor to demand a new guarantor if the original guarantor is convicted of a dishonest crime or becomes insolvent, except if a specific person was stipulated as the guarantor. [2] Articles 2058-2060 discuss the "benefit of excussion," which means the guarantor cannot be compelled to pay until the creditor exhausts all legal remedies against the debtor, unless certain conditions apply. [3] Article 2061 states that if the guarantor identifies sufficient property of the debtor to the creditor

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    24 views17 pages

    Ashlei Coline H. Latorre Law 3

    Uploaded by

    Janell Latorre
    The document discusses articles 2057-2061 from the Civil Code of the Philippines relating to guaranty. [1] Article 2057 allows a creditor to demand a new guarantor if the original guarantor is convicted of a dishonest crime or becomes insolvent, except if a specific person was stipulated as the guarantor. [2] Articles 2058-2060 discuss the "benefit of excussion," which means the guarantor cannot be compelled to pay until the creditor exhausts all legal remedies against the debtor, unless certain conditions apply. [3] Article 2061 states that if the guarantor identifies sufficient property of the debtor to the creditor

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    ASHLEI COLINE H.

    LATORRE
    LAW 3
    ARTICLE 2057
    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.
    Article 2057

    Qualifications need only be present at the


    time of perfection of contract.
    Article 2057

     Specified person stipulated as guarantor-


    the substitution of a guarantor may not be
    demanded
     Guarantor selected by the principal debtor-
    the debtor answers for the integrity,
    capacity and solvency of the former
     Guarantor personally designated by the
    creditor- the responsibility should fall upon
    the creditor.
    CHAPTER 2: EFFECTS
    OF GUARANTY
    SECTION 1- Effects of guaranty between
    the guarantor and creditor
    ARTICLE 2058
    Article 2058

    The guarantor cannot be compelled to pay the


    creditor unless the latter has exhausted all
    the property of the debtor, and has resorted
    all the legal remedies against the debtor
    Article 2058

    The obligation of the guarantor is only


    secondary.

    This is what otherwise known as the “benefit


    of excussion”
    ARTICLE 2059
    Article 2059

    This excussion shall not take place:


    1. If the guarantor has expressly renounced
    it.
    2. If he has bound himself solidarily with the
    debtor.
    3. In case of insolvency of the debtor.
    4. When he has absconded, or cannot be sued
    within the Philippines unless he has left a
    manager or representative.
    5. If it may be presumed that an execution on
    the property of the principal debtor would
    Article 2059
    1. Right waived- The benefit of excussion is a
    personal right recognized in a guarantor.
    2. Liability assumed- He becomes a surety with
    primary liability as a solidary co-debtor.
    3. Insolvency of debtor- The liability of the
    guarantor arises as the debtor cannot fulfill his
    obligation
    4. Debtor absconds or cannot be sued locally- He
    cannot fulfill his obligation unless he has left a
    representative.
    5. Resort to all remedies useless
    ARTICLE 2060
    Article 2060

    In order that the guarantor may make use of


    the benefit of excussion, he must set it up
    against the creditor upon the latter’s demand
    for payment from him, and point out to the
    creditor available property of the debtor
    within Philippine territory, sufficient to cover
    the amount of the debt.
    Article 2060

    It is not enough to assert the benefit, but there


    must be an actual identification of the assets.
    (within the Philippines)
    ARTICLE 2061
    Article 2061

    The guarantor having fulfilled all the


    conditions required in the preceding article,
    the creditor who is negligent in exhausting
    the property pointed out shall suffer the loss,
    to the extent of said property, for the
    insolvency of the debtor resulting from such
    negligence.

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