Dear PAO,
Our neighbor said that my cousin, who already left to work abroad, obtained a loan from him that was left unpaid. He claimed that I am bound to pay for it because my cousin allegedly told him that I would be willing to pay in case he fails to do so. Is that possible? I do not know what their agreement was; neither did I sign anything binding myself to pay for my cousin's debt.
Betsy
Dear Betsy,
It appears that your cousin entered into a contract with your neighbor, particularly a contract of loan. If said contract was entered into only by and between them, then they are the only ones bound by the obligations that arise therefrom, as well as their assigns and heirs. This is in accordance with our law, specifically Article 1311 of the New Civil Code of the Philippines:
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