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Part I: Discussions Give three illustrations / situations when a guarantor is released from his undertaking although the principal obligation still remains. Part II: Problems
Part I: Discussions
- Give three illustrations / situations when a guarantor is released from his undertaking although the principal obligation still remains.
Part II: Problems
Explain or state briefly the rule or reason for your answer and state the Article Number used for reference.
- D, debtor, C, creditor, and E,F and G, guarantor for D's debt of P15,000.00. D paid C P20,000.00. C releases E who is a very close friend of his, from the guaranty. D Subsequently, D failed to pay. Can C recover the P7,500.00 each from F and G?. Decide.
- Same parties. After 1 year, from date of maturity of D's obligation, D has not yet paid C; neither has C demanded payment, much less filed a complaint against D. E, F and G claim release from their guaranty. Decide.
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