THE GUARANTOR’S LIABILITY CANNOT EXCEED PRINCIPAL OBLIGATION
Art. 2054. A guarantor may bind himself for less, but not for more than the principal debtor, both as regards the amount and the onerous nature of the conditions.
Should he have bound himself for more, his obligations shall be reduced to the limits of that of the debtor. (1826)
1. Guaranty is a subsidiary and accessory contract—the guarantor cannot bind himself for more than the principal debtor and even if he does, his liability shall be reduced to the limits of that of the debtor
2. Interest, judicial costs, attorney’s fees as part of the damages may be recovered
a. The surety is made to pay not by reason of the contract but by reason of his failure to pay when demanded and for having compelled the creditor to resort to the courts to obtain payment
b. Interest doesn’t run from the time the obligation becomes due but from the filing of the complaint
3. Penalty may be provided