Practice question
A guarantor timely invokes excussion and identifies available debtor property in the Philippines sufficient to cover the debt. The creditor negligently fails to exhaust that property, and the debtor's resulting insolvency causes its value to be lost. Assuming Article 2061's requirements are proved, who bears the loss to that extent?
- The creditor, to the extent of the property lost through that negligence
- The guarantor in every case regardless of compliance
- An unrelated neighbor
- The guarantor automatically receives double the property value
- The debt becomes a donation
Legal references
- Civil Code Articles 2058–2074: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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