DUTY OF CREDITOR TO MAKE PRIOR DEMAND FOR PAYMENT FROM GUARANTOR

Art. 2060. In order that the guarantor may make use of the benefit of exclusion,  he must set it up against  the creditor upon the latter’s demand for payment from him, and point out  to  the  creditor  available  property  of  the  debtor  within Philippine  territory,  sufficient  to  cover  the  amount  of  the debt. (1832)

Art.  2061.  The  guarantor  having  fulfilled  all  the  conditions required  in  the  preceding  article,   the  creditor  who  is negligent  in  exhausting  the  property  pointed  out  shall suffer  the  loss,  to  the  extent  of  said  property,  for  the insolvency  of  the  debtor  resulting  from  such  negligence. (1833a)

1.   When demand to be made—only  after  judgment  on  the debt   for   obviously the exhaustion of the principal’s property cannot even being to take place before judgment has been obtained

2.   Actual  demand has to be made—the fact that  the guarantor was joined in a suit against the principal debtor necessarily means that a demand has already been made upon him

DUTY OF THE GUARANTOR TO SET UP BENEFIT OF EXCUSSION

> It  isn’t  enough  that  the  guarantor  claims  the  benefit  of excussion

> As soon as he is required to pay, he must also point out to the  creditor  available  property  of  the  debtor  within  the Philippines  
DUTY OF CREDITOR TO RESORT TO ALL LEGAL REMEDIES

> Failure to comply with duty of creditor would mean that he would suffer the loss but only to the extent of the value of said property, for the insolvency of the debtor

JOINDER OF GUARANTOR AND PRINCIPAL AS PARTIES DEFENDANT

> The GENERAL RULE is that the guarantor, not being a joint contractor  with  the  principal,  cannot  be  sued  with  his principal

> EXCEPTION:   not required  when it  would serve  merely to delay the ultimate accounting of the guarantor