Part I: Discussions

1. Give three illustrations / situations when a guarantor is released from his undertaking although the principal obligation still remains.

Part II: Problems

Explain or state briefly the rule or reason for your answer and state the Article Number used for reference.

1. D, debtor, C, creditor, and E,F and G, guarantor for D's debt of P15,000.00. D paid C P20,000.00. C releases E who is a very close friend of his, from the guaranty. D Subsequently, D failed to pay. Can C recover the P7,500.00 each from F and G?. Decide.
2. Same parties. After 1 year, from date of maturity of D's obligation, D has not yet paid C; neither has C demanded payment, much less filed a complaint against D. E, F and G claim release from their guaranty. Decide.