Cred Trans 9/1/15

If B – L increased amount from 100M 110 M is guarantor liable for new amount? No, it can actually extinguish guarantee

If compromise between B L cannot compromise G (ex. Reduced obligation bet 2 parties)

2063 – Compromise bet C D cannot prejudice the guarantor; bet G C benefits Debtor but does not prejudice the same

If no consent? Apply rules on 3rd partpayment

Will 2063 always be beneficial to debtor?

Ex. Concession – reduce amount of liability if good relations, discount (in a perfect world, whatever happens you will get full indemnity)

In perfect world? Will you as lender allow disc? No, since no point, there is no fee (removed incentive for G to work for benefit of B)

X = guarantor ; L =lender; B = borrower

Instance where x can get compromise but X will get savings = Yes it can be done. Splitting of contract. not circumvention, you can defend it as services of X to B – X is then acting in different capacity

Benefit of Division- Obligation is presumed to be JOINT- Lost when benefit of excussion is lost

(A2059)- A2065 – read as insolvency of co

guarantor (mutatis mutandis) ???

Guaranty contract is for a fee – What is the consequence? Construed strictly against Guarantor

Ex. Stricter presumption against guarantor

Ex. X pays obligationB defaults

- Gratuitous- Can X collect from B?

o 1st: Determine if B consented, if not – then apply rules on 3rd party payment

Guarantor:- Has right to indemnity- Subrogation – he acquires rights of

debtor

Obligation of Guarantor before paying:- Give notice to debtor: why? B could

have done something to reduce obligation/ paid, it would be prudent for X to give notice

2069 – period- If debt was for a period. No demand for

reimbursement until period expired

X has right against Principal Debtor (B) before paying! See 2071 – 7 instances! (IMPT)

Release : X entitled to be released by Borrower from Guaranty? No, Lener and Guarantor are the parties in this case. UNLESS ALL 3 PARTIES agree.