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Destileria Limtuaco & Co. Inc. vs. IAC et al.

DESTILERIA LIMTUACO & CO., INC., petitioner, vs. INTERMEDIATE APPELLATE COURT, NICOLAS and ESTRELLA CRODUA, ELSIE CRODUA-CENIZA and JOEL CENIZA, respondents.

G.R. No. 74369 | 1988-01-29

D E C I S I O N


NARVASA, J.:

Involved in the instant appeal on certiorari is the validity of the conclusion of the Trial Court, sustained by the Appellate Court, that the use of the word "guarantee" in two (2) ostensible mortgage deeds suffices to construe the purported mortgages as contracts of guaranty with the concomitant benefit of excussion. 1 (ART. 2058-2060)

Jesus Crodua was appointed senior sales agent of Destileria Limtuaco & Co., Inc. for Samar and Leyte (and later, also of Cebu). The "Senior Salesman Agency Contract", dated April 4, 1980, required Jesus Crodua to put up a first mortgage or a surety bond to guarantee or assure...