What are the differences between Guaranty and Surety?

A contract of suretyship is an agreement whereby a party, called the surety, guarantees the performance by another party of an obligation or undertaking in favor of another party. Under a normal contract of guarantee, the guarantor binds himself to the creditor to fulfill the obligation of the principal debtor in case the latter should fail to do so. However, the guarantor cannot be compelled to pay the creditor unless the latter has exhausted all the property of the debtor and resorted to all the legal remedies against the debtor.

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Alburo Law
September 05, 2025

A contract of suretyship is an agreement whereby a party, called the surety, guarantees the performance by another party of an obligation or undertaking in favor of another party. 

 Under a normal contract of guarantee, the guarantor binds himself to the creditor to fulfill the obligation of the principal debtor in case the latter should fail to do so. However, the guarantor cannot be compelled to pay the creditor unless the latter has exhausted all the property of the debtor and resorted to all the legal remedies against the debtor.

The Supreme Court affirmed the conviction of a 68-year-old foreigner for rape and qualified trafficking after inviting and meeting with a minor for sex. In the case of People of the Philippines v. Willem Johannes Peek (G.R. No. 256452, February 25, 2025), the SC held that Peek forced the victim to engage in sexual acts in exchange for money and and under threat of uploading her nude photos online if she refused.

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