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  • 115 - Radio Corporation of The PH Vs Jesus Roa, Et Al (1935)

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    Bibi Jumpol
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    1) Jesus Roa took out a loan from PH Theatrical Enterprise which was later assigned to Radio Corporation of the PH. The loan contract contained an accelerating clause making the full amount due if one installment was missed. 2) Radio Corporation granted an extension to pay the February installment to Jesus Roa without the consent of the guarantors. 3) The Supreme Court ruled that the extension granted by Radio Corporation without the consent of the guarantors extinguished their liability for the full amount, as the contract made the entire balance due upon missing one payment.

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    115 - Radio Corporation of the PH vs Jesus Roa, et al (1935)

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    1) Jesus Roa took out a loan from PH Theatrical Enterprise which was later assigned to Radio Corporation of the PH. The loan contract contained an accelerating clause making the full amount due if one installment was missed. 2) Radio Corporation granted an extension to pay the February installment to Jesus Roa without the consent of the guarantors. 3) The Supreme Court ruled that the extension granted by Radio Corporation without the consent of the guarantors extinguished their liability for the full amount, as the contract made the entire balance due upon missing one payment.

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    28 views2 pages

    115 - Radio Corporation of The PH Vs Jesus Roa, Et Al (1935)

    Uploaded by

    Bibi Jumpol
    1) Jesus Roa took out a loan from PH Theatrical Enterprise which was later assigned to Radio Corporation of the PH. The loan contract contained an accelerating clause making the full amount due if one installment was missed. 2) Radio Corporation granted an extension to pay the February installment to Jesus Roa without the consent of the guarantors. 3) The Supreme Court ruled that the extension granted by Radio Corporation without the consent of the guarantors extinguished their liability for the full amount, as the contract made the entire balance due upon missing one payment.

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    Title Radio Corporation of the PH vs Jesus Roa, et al, GR No.

    42829,
    September 30, 1935
    Ponente GODDARD, J.
    Doctrine Guaranty and Surety
    Facts ● Jesus Roa, the principal debtor, became indebted to the PH
    Theatrical Enterprise in the sum of P28,400. Later, PH Theatrical
    Enterprise assigned all its right and interest in that contract to
    the Radio Corporation of the PH

    ● The contract between PH Theatrical Enterprise and Radio


    Corporation contained an accelerating clause stating that in case
    the vendee-mortgagor fails to make any of the playments, the
    whole amount remaining unpaid shall immediately become due
    and payable and this mortgage on the property mentioned as
    well as the Luzon Surety Bond may be foreclosed by the vendor-
    mortgagee

    ● Later, Erlanger & Galinger, acting in its capacity as attorney-in-


    fact of the Radio Corporation wrote to Jesus Roa stating that it
    does not object to the extension requested by the latter to pay
    the February installment by the 1st week of April

    ● However, Roa, et al failed to pay

    ● An action was instituted by Radio Corporation before CFI which


    was granted by the lower court ordering Ramon Chavez, Andes
    Roa and Manuel Roa to pay Radio Corporation a sum of money

    ● Ramon, Andes and Manuel, the guarantors, appealed CFI’s


    decision before the Supreme Court alleging that CFI erred in not
    finding Jesus Roa having defaulted in the payment of the
    installment due on February and that Radio Corporation gave him
    an extension of time for the payment of said installment
    Issue W/N the extension granted by Radio Corporation, without the consent of
    the guarantors, extinguishes their liability not only as to the installments
    due at that time but also as to the whole amount of their obligation?
    SC Ruling Yes, the extension granted by Radio Corporation extinguishes Ramon,
    Andes and Manuel, the guarantors' liability to the whole amount of their
    obligation.

    As a rule, an extension of time granted to the debtor by the creditor,


    without the consent of the sureties, extinguishes the latter’s liability
    however, where a surety is liable for different payments, an extension of
    time as to one or more will not affect the liability of the surety for the
    others. In the instant case, in view of the fact that under the express
    provision of the contract, the whole unpaid balance automatically
    becomes due and payable upon failure to pay 1 installment, the act of
    Radio Corporation in extending the payment of the installment originally
    due on February to April, without the consent of the guarantors,
    constituted an extension of the payment of the whole amount of the
    indebtedness. Hence, the guarantors’ contention in the instant case that
    after default of the payment of 1 installment, the act of Radio
    Corporation, the creditor, in extending the time of payment, discharges
    them as guarantors, is found correct by the Court. Thus, the Court
    reversed CFI’s decision.

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