Practice question
A guarantor validly limits a P500,000 principal debt guaranty to P100,000. The creditor argues every guarantor must cover the entire principal amount. Which rule applies?
- Article 2054 permits a guarantor to bind oneself for less than the principal debtor
- Every limited guaranty is necessarily void
- The limit always expands to P1 million
- The debtor's friendship controls the amount
- A guarantor can never limit the undertaking
Legal references
- Civil Code Articles 2047–2057: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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