E zobel v CA digest

[G.R. No. 113931. May 6, 1998] E. ZOBEL, INC., INC., petitioner  petitioner, vs. THE COURT OF APPEALS, CONSOLIATE BAN! AN TRUST CORPORATI CORPORATION, ON, a"# SPOUS SPOUSES ES RAUL a"# ELEA R. CLA CLA$ERIA, $ERIA, respondents.

%ssue: •

hether hether or not petitioner petitioner under the "Continuing "Continuing 7uarant5" 7uarant5" obligated obligated itself itself to #$%&BA'( as a guarantor or a suret50

Facts: •

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Raul and Elea Claveria, doing business under the name "Agro Brokers," applied for a loan with respondent respondent Consolidated Bank and rust Corporation !now #$%&BA'() in the amount of *+, -.,///0// to 1nance the purchase of two maritime barges and one tugboat which would be used in their molasses business0  he loan was granted sub2ect to the condition that the spouses e3ecute a chattel mortgage over the three vessels to be ac4uired and that a continuing guarantee be e3ecuted b5 A5ala %nternational %nternational *hilippines, %nc0, now herein petitioner E0 6obel, %nc0 in favor of #$%&BA'(0  he spouses agreed to the arrangement0 Conse4uentl5, a chattel mortgage and a Continuing 7uarant5 were e3ecuted0 e3ecuted0 pouses defaulted in the pa5ment of the entire obligation upon maturit50 8ence, on 9anuar5 ;,;