Astro Electronics Corp. v Philguarantee; G.R. No. 136729; 23 Sep 2003; 411 SCRA 462

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Respondent guaranteed the payment of 70% of petitioner corporation’s loans on the condition that upon payment of said amount it shall be proportionally subrogated to the rights of the original creditor. The loans were secured by three promissory notes, each of which petitioner Roxas signed twice – as president of petitioner corporation and in his personal capacity. For their failure to pay their loan obligations, respondent filed against both petitioners a complaint for sum of money.

Whether or not petitioner Roxas should be jointly and severally liable.

Under the Negotiable Instruments Law, persons who write their names on the face of promissory notes are makers, promising that they will pay to the order of the payee or any holder according to its tenor. Thus, even without the phrase “personal capacity,” petitioner Roxas will still be primarily liable as a joint and several debtors under the notes considering that his intention to be liable as such is manifested by the fact that he affixed his signature on each of the promissory notes twice which necessarily would imply that he is undertaking the obligation in two different capacities, official and personal.

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