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Unformatted text preview: out notifying the surety, the
Bank deprived the former of any possibility of recoursing against that security. The Bank thereby exonerated
the surety, pursuant to Article 2080 of the Civil Code:
ART. 2080. — The guarantors, even though they be solidary, are released from their obligation
whenever by come act of the creditor they cannot be subrogated to the rights, mortgages and preferences of
the latter. (Emphasis supplied.)
The appellant points out to its letter of demand, Exhibit "K", addressed to the Bureau of Public
Works, on May 5, 1949, and its letter to ATACO, Exhibit "G", informing the debtor that as of its date,
October 31, 1949, its outstanding balance was P156,374.83. Said Exhibit "G" has no bearing on the issue
whether the Bank has exercised due diligence in collecting from the Bureau of Public Works, since the
letter was addressed to ATACO, and the funds were to come from elsewhere. As to the letter of demand on
the Public Works office, it does not appear that any reply thereto was made; nor that the demand was
pressed, nor that the debtor or the surety were ever apprised that payment was not being made. The fact
remains that because of the Bank's inactivity the other creditors were enabled to collect P173,870.31, when
the balance due to appellant Bank was only P158,563.18. The finding of negligence made by the Court of
Appeals is thus not only conclusive on us but fully supported by the evidence
Nepomuceno v. Heredia, 7 Phil 563 (1907) FRANCISCO
Art.1887. In the execution of the agency, the agent shall act in accordance with the instructions of the
principal. In default thereof, he shall do all that a good father of a family would do, as required by the nature
of the business.
● Genaro Heredia is the business adviser of one of the plaintiffs, Marciana Canon and about the same
time, Felisa Nepomuceno, the other plaintiff, had an unsecured debt due her of 500 pesos from one
● The debtor proposed to give her a deed of conditional sale to a certain tract of land in consideration
of 2,000 pesos, she to be credited with 500 pesos on the purchase price and that to advance the
balance of 1,500 pesos; that knowing tha...
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This document was uploaded on 03/11/2014.
- Fall '14