JUN MARX MAROLINA

For Thursday, Apr30, 1pm

Due at 5pm

QUIZ ON GUARANTY, PART THREE

50 points + 10 bonus points = 60 points

Scenarios. (5 points)
Starring: X, Y and Z as guarantors. D as debtor. C as creditor.

1. X, Y and Z are guarantors of D for the same debt. X paid. What can X demand
from Y and Z?

Answer:

X may demand from each of the Y and Z their share of the debt being guaranteed.

The Civil Code provided that should there be two or more guarantors of the same
debtor and for the same debt and that one of the former has paid the debt, may
demand of each of the others the share of which is proportionally owing to him.
However, this is only applicable by virtue of judicial demand or if the debtor is
insolvent.

Hence, X may demand reimbursement from the proportionate share of Y and Z’s
guaranty.

2. X, Y and Z are guarantors of D for the same debt. X paid. Y is insolvent. Who
shall bear Y’s share?

Answer:

X and Z shall borne the share of Y.

The Civil Code provided that should there be two or more guarantors of the same
debtor and for the same debt, the one among them who has paid may demand of
each of the others the share which is proportionally owing from him and in case
one of them is insolvent, his share shall be borne by the others.

In the case, since Y is insolvent, X and Z, thus, shall borne the share of Y.

3. X, Y and Z are guarantors of D for the same debt. X paid. What defenses can Y
and Z set up against X?

Answer:

Y and Z, the co-guarantors of X who has paid the debt of D may set up the same
defenses which would have pertained to the principal debtor against the creditor,
except those that are personal to the debtor

4. X, Y and Z are guarantors of D for the same debt. Y is insolvent. A is a sub-

guarantor of Y. What is A’s responsibility to X and Z?
 Answer:

A, the sub-guarantor, is responsible to the co-guarantors in the same terms as the

guarantor.

The Civil Code provided that a sub-guarantor, in case of the insolvency of the
guarantor for whom he bound himself, is responsible to the co-guarantors in the
same as the guarantor.

Thus A was placed in the shoes of Y of being a guarantor.

5. X, Y and Z are guarantors of D for the same debt. C is a creditor. C released X

from the obligation without the consent of Y and Z. How does this benefit Y and
Z?

Answer:

Y and Z benefited from the share of X guaranty which was released.

The Civil Code provided that a release made by the creditor in favor of one of the
guarantors, without the consent of the others, benefits all to the extent of the
share of the guarantor to whom it was granted.

Thus, the share of X of the guaranty being cancelled will not be demanded from
either Y and Z or both.

6. X, Y and Z are guarantors of D for the same debt. They are solidary guarantors. C
is a creditor. By some act of C – X, Y and Z cannot be subrogated to the right of
C. What happens to the obligation of X, Y and Z?

Answer:

The obligation of X, Y and Z is released.

The Civil Code provided that the guarantors, even though liable solidarily, are
released from their obligation whenever by some act of the creditor they cannot
be subrogated to his right.

7. X is a guarantor, D is a debtor and C is a creditor. C voluntarily accepted from D

an immovable in payment of the debt. But C later lost the same through eviction.
What happens to the guaranty?

Answer:

The guarantor is released.

If the creditor voluntarily accepts immovable or other property in payment of the

debt and was lost afterwards the same through eviction, the guarantor is
released.

Thus, the guaranty is extinguished.

 8. X is a guarantor, D is a debtor and C is a creditor. C granted an extension to D
without the consent of X. What happens to the guaranty?

Answer:

The guaranty is extinguished.

An extension granted to the debtor by the creditor without the consent of the
guarantor extinguishes the guaranty.

Thus X is released from his obligation.

Explain. (5 points)
1. When is the obligation of the guarantor extinguished?
a. Payment of the obligation in money or anything of value accepted by the
creditor
b. Release of the other guarantor without the consent of the other co-guarantors,
extinguishes the share of the guarantor being released.
c. Extension of the debt without the guarantors consent
d. If through the fault of the creditor, the guarantor are precluded from being
subrogated to the former’s right

2. What are the defenses that the guarantor may set up against the creditor?

The guarantor may set up against the creditor all the defenses which pertain to
the principal debtor and are inherent in the debt, but not those that are personal
to the debtor.

Help please. (10 bonus points)

1. What do you think is your grade for your performance in the first exam? 

I think (since this should not be founded with a legal bases) the best answer would be
around 75 of 100. A passing score will do. If I answer 100 then there’s no room for
me to grow anymore despite the fact that I have encountered this subject both in the
room and in practice moreover it would be a false answer.

Along the lines, I see myself as someone who’s yet to learn a lot from you, Fiscal.