This case has been cited 1 times or more.
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2014-03-12 |
PERALTA, J. |
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| The nature of a suretyship is elucidated in Philippine Charter Insurance Corporation v. Petroleum Distributors & Service Corporation[11] in this wise: A contract of suretyship is an agreement whereby a party, called the surety, guarantees the performance by another party, called the principal or obligor, of an obligation or undertaking in favor of another party, called the obligee. Although the contract of a surety is secondary only to a valid principal obligation, the surety becomes liable for the debt or duty of another although it possesses no direct or personal interest over the obligations nor does it receive any benefit therefrom. This was explained in the case of Stronghold Insurance Company, Inc. v. Republic-Asahi Glass Corporation, where it was written: | |||||