Corporation has a distinct juridical entity

A bank granted several loans to a corporation. These loans were secured by a nine million real estate mortgage and P25-million surety agreement. The loans were entered into by the corporation’s president and general manager (GM) while the surety agreement was signed by the GM and his wife.

The corporation defaulted in its payments. And despite the sale of the mortgaged properties, a deficit of over P13 million subsisted. Thus, a claim for a sum of money was filed against the corporation, it’s GM, and the GM’s wife.