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The Supreme Court held that Uy & Dio are liable. The agreement they
executed in 1977 is a continuing suretyship, one which is not limited to a
single transaction but which contemplates a succession of liabilities, for
which, as they accrue, the guarantor becomes liable. The agreement that
petitioners signed expressly provided that it is a continuing guaranty and
shall be in full force and effect until written notice to the bank that it has
been revoked by the surety. As to the 2 nd issue, petitioners are only liable up
to the maximum limit fixed in the continuing suretyship agreements
(Php800,000 for Dio and Php300,000 for Uy). The law is clear that a
guarantor may bind himself for less, but not for more than the principal
debtor, both as regards the amount and the onerous nature of the conditions
(Art. 2054). CA decision ordering petitioners to pay P2,397,883.68 which
represents the amount due inclusive of interest and charges, is modified.