Explanation of Article 606
The article clarified the effect of the combination of the creditor and guarantor roles in one person; this is known as "merger of obligations." This means that the guarantor's role transfers to the creditor, such as when the guarantor bequeaths the guaranteed debt to the creditor. In this case, the guarantee does not expire, and the guarantor remains obligated to the debt. This is because the guarantee is an ancillary contract that does not stand on its own and does not expire until the guaranteed debt is extinguished. If the debt still exists in the debtor's liability, the guarantee does not expire.
This ruling is included in the first paragraph of this article, indicating that the guarantor guarantees the debt, not the debtor's person. If the roles of creditor and guarantor are combined in one person, the guarantor remains obligated to the debt. This is because the guarantee is an ancillary contract that does not stand on its own and does not expire until the guaranteed debt is extinguished. If the debt still exists in the debtor's liability, the guarantee does not expire.
The second paragraph clarified that if the guarantor has released the creditor from the debt, the guarantee expires. This is because the release from the debt leads to the extinguishment of the guaranteed debt. This is due to the guarantee's dependence on the guaranteed debt; the guarantee follows the existence and non-existence of the guaranteed debt. This is what Article (604) established.
The article indicated that this ruling is not of public order, so it is permissible to agree otherwise.
Related To
Article 606
A suretyship contract shall not terminate upon the death of the surety or the debtor; in case of the death of the surety or the debtor, the obligation shall remain in effect against his estate.