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The Supreme Court ruled that: 1) A continuing suretyship agreement executed by a corporation and its individual stockholders in favor of a creditor is valid, even if no pre-existing obligation exists at the time of signing, as long as the agreement establishes a continuing line of credit. 2) Individual sureties may be held solidarily liable with the principal corporation under such an agreement. 3) The Court of Appeals erred in dismissing the complaint against the individual sureties, as the continuing
- Author
- YieMaghirang
- Language
- EN