This case has been cited 3 times or more.
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2016-01-13 |
BRION, J. |
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| The terms of a contract govern the parties' rights and obligations. When a party undertakes to be "jointly and severally" liable, it means that the obligation is solidary.[19] Furthermore, even assuming that a party is liable only as a guarantor, he can be held immediately liable without the benefit of excussion if the guarantor agreed that his liability is direct and immediate.[20] In effect, the guarantor waived the benefit of excussion pursuant to Article 2059(1) of the Civil Code. | |||||
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2007-09-05 |
AZCUNA, J. |
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| As petitioner acknowledged it to be, the relation between an accommodation party and the accommodated party is one of principal and surety the accommodation party being the surety.[62] As such, he is deemed an original promisor and debtor from the beginning;[63] he is considered in law as the same party as the debtor in relation to whatever is adjudged touching the obligation of the latter since their liabilities are interwoven as to be inseparable.[64] Although a contract of suretyship is in essence accessory or collateral to a valid principal obligation, the surety's liability to the creditor is immediate, primary and absolute; he is directly and equally bound with the principal.[65] As an equivalent of a regular party to the undertaking, a surety becomes liable to the debt and duty of the principal obligor even without possessing a direct or personal interest in the obligations nor does he receive any benefit therefrom.[66] | |||||
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2007-04-03 |
CALLEJO, SR., J. |
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| The Court notes, however, that respondent is a stranger to the contract of loan between petitioner and PMRDC; it cannot thus be held liable for an obligation which it did not undertake to perform or at least to guarantee. It is basic that the parties are bound by the terms of their contract which is the law between them. The extent of a surety's liability is determined by the language of the suretyship contract or bond itself. It cannot be extended by implication, beyond the terms of the contract.[49] Contracts have the force of law between the parties who are free to stipulate any matter not contrary to law, morals, good customs, public order or public policy.[50] If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control.[51] | |||||