Practice question
After a loan matures, the creditor and debtor validly agree to a new binding payment period. The ordinary guarantor did not consent, and no advance consent or valid waiver applies. The creditor insists the new period can never affect the guaranty. What does Article 2079 provide?
- Every extension automatically increases the guarantor's liability.
- An extension granted without the guarantor's consent extinguishes the guaranty on these stipulated facts.
- The guarantor must sign every future contract for the debtor.
- The debtor's agreement supplies the guarantor's consent automatically.
- The guarantor becomes the new creditor.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Article 2079.
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