CONTINUING GUARANTY OR SURETYSHIP

Art.  2053.  A  guaranty  may  also  be  given  as  security  for future debts, the amount  of  which is not  yet known; there can  be  no  claim  against  the  guarantor  until  the  debt  is liquidated.  A  conditional  obligation  may  also  be  secured. (1825a)

>     One  which  isn’t  limited to a single transaction  but  which contemplates a future course of dealings, covering a series of  transactions  generally  for  an  indefinite time or until revoked
>     Prospective  in  its  operations  and  is  generally  intended  to provide security with respect to future transactions
>     Future debts, even if the amount is not yet known, may be guaranteed but there can be no claim against the guarantor  until  the  amount  of  the  debt  is  ascertained  or fixed and demandable  
>     Take  note  however  that  the  abovementioned  provision may  be  misleading  in  sanctioning  guarantees  for  future debts. What  should  be  bore  in  mind  is  that  there  is already  an  existing  obligation  that  is  being  guaranteed. The guaranty would  be void  if  there  is  no  existing obligation.   
 

HOW ABOUT GUARANTY OF CONDITIONAL OBLIGATIONS

>    If  the  principal  obligation  is  subject  to  a  suspensive condition, the guarantor  is liable  only after the fulfillment of the condition
>    If it is subject to a resolutory condition, the  happening  of the condition extinguishes both the principal obligation and the guaranty