Philippine Guaranty Agreement Generator

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Choose the kind of guaranty

3 questions on this step

Philippine law treats a guaranty (secondary liability) and a suretyship (solidary liability) very differently. Choose deliberately.

This is a private guaranty or suretyship by an individual for an identified debt under Philippine law — not a bank guarantee, standby letter of credit, surety-company bond, or guaranty of a regulated financial product

How is the Guarantor liable?

Guaranty — the Guarantor pays only if the Debtor fails toSecondary liability. The benefit of excussion applies unless it is waived.Suretyship — the Guarantor is solidarily liable with the DebtorThe Creditor may demand payment from the Guarantor without first pursuing the Debtor.

Benefit of excussion

Keep it (Art. 2058)The Creditor must first exhaust the Debtor's property, and the Guarantor must point to that property when payment is demanded.Waive it (Art. 2059)The Creditor may go after the Guarantor once the Debtor is in default and written demand is made.

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