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it is in the nature of a stipulation in favor of a third person which the guarantor or debtor may accept unless it has been revoked before his acceptance