Legal Insights

Plain-language guides and case briefs on Philippine law — researched from the firm's law library of 184,000+ statutes, Supreme Court decisions, and agency issuances, and written so non-lawyers can understand and act on them.

Showing 124 of 41 articles for guarantor

DOSRI Violations in Philippine Banking: Lessons from Apolinario v. People

The Supreme Court's ruling in Apolinario v. People clarifies DOSRI rules, insider lending limits, and director liability in Philippine banking.

Notarizing a Document: When a Notary Public Is Not Liable for False Contents

Learn when a notary public is not liable for false statements in a notarized document, based on a 2020 Philippine Supreme Court ruling.

Guarantee vs Suretyship: How Waiving Excussion Changes Liability

The Supreme Court clarifies when a "guarantee" becomes a suretyship, and why a rehabilitation stay order does not protect a surety.

Loan Restructuring and Surety Obligations: Understanding Novation and Continuing Guarantees

Philippine Supreme Court clarifies when loan restructuring extinguishes a surety's obligation and the binding effect of continuing guarantees.

Corporate Dissolution Directors As Trustees and Guarantor Liability After Corporate Revocation

Explains Reyes v. Bancom: corporate revocation doesn't abate suits, directors act as trustees, and guarantors remain liable.

Contractual Negligence: Defining the Scope of Liability in Service Agreements

A Supreme Court ruling on surety bonds clarifies when a contractor's breach triggers full liability, and how compensation applies.

Surety’s Liability: The Extent and Limits Under Philippine Law

Understand the scope of a surety’s obligations in the Philippines, including liability limits, defenses, and key legal principles.

Surety Liability After Foreclosure: Carodan v. China Banking Corporation

When a bank releases a principal debtor's collateral, a surety may still be liable for the deficiency if the surety agreement expressly allows it.

Surety Agreements: Solidary Liability and Waiver of Rights in Loan Obligations

Philippine Supreme Court ruling on surety liability, accommodation mortgagors, and waiver clauses in loan deficiency claims.

Breach of Contract and the Limits of Bank Manager Authority: Apparent Authority in Real Estate Transactions

When does a bank branch manager's promise bind the bank? The Supreme Court explains apparent authority in Games and Garments Developers, Inc. v. Allied Banking Corporation.

Revocation and Renewal: Understanding Surety Obligations in Philippine Banking

When a continuing surety expires or is revoked, a bank cannot hold the surety liable for loans made after that point.

Breach of Trust Establishing Guilt in Qualified Theft Cases in the Philippines

The Supreme Court explains how a cashier's breach of confidence proves qualified theft, affirming reclusion perpetua for P640,353.86 misappropriation.

Surety Bonds Survive Debt Extension: Key Supreme Court Ruling on Article 2079

Extension of a principal's debt without a surety's consent does not automatically extinguish surety bonds, per the Supreme Court.

Oral Partition of Land: When Possession Establishes Ownership Rights in the Philippines

Philippine Supreme Court ruling on oral partition, possession, and ownership rights over inherited land. Learn the legal rules.

Corporate Rehabilitation Separate Juridical Personality Prevails Over Third Party Mortgages

Supreme Court clarifies that corporate rehabilitation stay orders do not cover properties owned by third-party mortgagors.

Demurrage Recovery in the Philippines: How Subrogation Protects Payers

Learn how legal subrogation allows an indent representative to collect demurrage from a defaulting buyer, as ruled by the Supreme Court.

Solidary Liability of Sureties: Understanding Your Obligations in Philippine Law

Philippine Supreme Court clarifies that sureties solidarity liable with a debtor cannot use corporate rehabilitation stay orders to delay or avoid payment obligations.

Reimbursement Rights When a Payor Can Recover Debt Paid on Another's Behalf

When can a co-maker recover payment made on a debtor's loan? The Supreme Court explains Article 1236 reimbursement rules.

Proving Work-Related Illness in Seafarer Disability Claims: The Francisco Case

Philippine Supreme Court clarifies when a seafarer's illness is compensable, emphasizing proof of work-relatedness beyond mere occurrence during employment.

Bank Not Subsidiarily Liable for Loan Proceeds Released to Borrower

Supreme Court rules banks are not automatically liable when loan proceeds go to a borrower instead of a third-party seller.

Limits of DARAB Jurisdiction: Certiorari Power and Agrarian Dispute Resolution

Supreme Court clarifies DARAB jurisdiction limits, certiorari power, and the finality of agrarian dispute decisions in just compensation cases.

Parol Evidence Rule and Commitment Fees: Norton Resources v. All Asia Bank

When a written contract is clear, courts will not look beyond its four corners. The parol evidence rule explained.

Guarantor's Defense of Excussion: What the Supreme Court Requires

Explaining the benefit of excussion for guarantors under Philippine law, based on the Supreme Court's ruling in Bitanga v. Pyramid Construction.

Crossed Checks and Collecting Banks: Who Bears the Loss for Wrong Endorsement?

Learn when a collecting bank is liable for depositing a crossed check into the wrong account, and the duty to verify endorsements.