1) The spouses Osmeña and Merlyn Azarraga obtained a loan of P30,000 from M.B. Lending Corporation along with petitioner Estrella Palmares as a co-maker. Several payments were made but a balance of P13,700 remained. M.B. Lending Corporation sued Palmares as the sole defendant. 2) The issue is whether Palmares' liability is as a surety or guarantor. 3) The court ruled that based on the clear terms of the contract, Palmares is solidarily liable as a surety since she voluntarily signed the promissory note and cannot claim ignorance of the legal effect. M.