Compromise In A Contract With Guaranty

Art.  2063.  A  compromise  between  the  creditor  and  the principal   debtor   benefits   the   guarantor   but   does   not prejudice  him.  That  which  is  entered  into  between  the guarantor and the creditor benefits but does not prejudice the principal debtor. (1835a)

COMPROMISE

> Contract   whereby   the   parties,   by   asking   reciprocal concessions, avoid a litigation or put an end to one already commenced

EFFECTS OF COMPROMISE

1.   Where   prejudicial—a   contract   binds   only   the   parties thereto  and  not  third  persons.    Hence,  a  compromise cannot prejudice the guarantor or the debtor, as the case may be, when he is not a party to such compromise.

2.   Where  in  the  nature  of  the  stipulation  in  favor  of  third person—however, even if the guarantor or debtor is not a party to  such  compromise, the same  can  still benefit him as  it  is  in  the  nature  of  a  stipulation  in  favor  of  a  third person which the guarantor or debtor may accept unless it has been revoked before his acceptance