Merger which takes place in the person of
the principal debtor or creditor benefits the guarantors. Confusion which takes
place in the person of any of the latter does not extinguish the obligation.
Ang pag-iisa o
pagsasanib ng prinsipal na nangutang at nagpautang ay ika-papakinabang ng
tagapanagot. Ang pag-iisa o pagsasanib ng tagapanagot ay hindi maaaring
makapagpa-walang bisa o makapag-wala ng obligasyon.
Two
kinds of merger:
a.
Merger in the person of the principal debtor or
principal creditor;
b.
Merger in the person of the guarantor.
The
first merger results in the extinguishment of the guaranty because the latter
is just an accessory obligation. When the principal obligation is extinguished,
the accessory obligation is also extinguished. Thus, the law says, the
confusion benefits the guarantor.
The
second merger will not extinguish the principal obligation because the efficacy
of the principal obligation is not dependent upon the accessory obligation.
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