
A GUARANTY IS STRICTLY CONSTRUED
Category: Obligations and Contracts
A GUARANTY IS STRICTLY CONSTRUED
> It has to be strictly interpreted against the creditor and in favor of the guarantor and isn’t to be extended beyond its terms or specified limits
> The rule of strictissimi juris commonly refers to an accommodation party. Why? An accommodation surety acts without motive of pecuniary gain and hence, should be protected against unjust pecuniary impoverishment by imposing on the principal duties akin to those of a fiduciary. Take note further that this rule only applies once it is established that the contract is one of suretyship
or guaranty.
Related Philippine Law Resources:
Newer Philippine Law Resources:
Additional Law Reading:
A GUARANTY IS STRICTLY CONSTRUED
Category: Obligations and Contracts
A GUARANTY IS STRICTLY CONSTRUED
> It has to be strictly interpreted against the creditor and in favor of the guarantor and isn’t to be extended beyond its terms or specified limits
> The rule of strictissimi juris commonly refers to an accommodation party. Why? An accommodation surety acts without motive of pecuniary gain and hence, should be protected against unjust pecuniary impoverishment by imposing on the principal duties akin to those of a fiduciary. Take note further that this rule only applies once it is established that the contract is one of suretyship
or guaranty.
Related Philippine Law Resources:
Newer Philippine Law Resources:
Additional Law Reading:
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