Consuelo Piczon

-versus-
Esteban Piczon

G.R. No. L-29139, November 15, 1974

FACTS:

Sosing-Lobos & Co. obtained loan of P12,500.00 from Piczon Co. Inc. Esteban Piczon,
who is the President of Sosing-Lobos, bound himself as guarantor and agreed to the
use of the loan as surety cash deposit for the registration with the Securities and
Exchange Commission (SEC) of the incorporation papers. He also agreed to return or
pay the same amount with 12% interest per annum commencing from the date of
execution. Consuelo Piczon brought action to recover the amount loaned. The court
ruled in favour of Consuelo Piczon and ordered Esteban Piczon and Sosing-Lobos to
pay him as guarantor the amount of the loan plus interest.

ISSUE: WON Esteban Piczon is a surety or a guarantor?

HELD:

Under the terms of the contract Esteban Piczon expressly bound himself only as
guarantor. There was no other stipulation or are there any circumstances on record
from which it can be deduced that his liability could be that of surety. A guaranty must
be express, and it would be in violation of the law to consider a party to be bound as
surety when the very word used in the agreement is guarantor.