Practice question
A debtor owes P300,000 under specified conditions. A guaranty purports to bind the guarantor for P500,000 on more onerous terms, without a separate independent obligation. The creditor insists the guaranty must be enforced to its full stated excess. What does Article 2054 provide?
- The guarantor's obligation is reduced to the principal debtor's limits
- The excess necessarily remains enforceable solely because written
- The principal debt automatically increases to match the guaranty
- The guarantor automatically owns the debtor's business
- All lesser guaranties are forbidden
Legal references
- Civil Code Articles 2047–2057: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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