Practice question
A debtor gratuitously alienates property without reserving enough to pay debts contracted before the donation. A creditor invokes the presumption in Article 1387. Which statement is accurate?
- Every donation is conclusively fraudulent regardless of retained assets or debts.
- Only a criminal conviction can establish fraud of creditors.
- The presumption applies solely to debts first incurred after donation.
- The stated failure to reserve sufficient property for prior debts triggers the statutory presumption of fraud.
- The presumption automatically eliminates all other rescission requirements.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, articles 1380–1389.
- https://lawphil.net/judjuris/juri2015/jan2015/gr_167519_2015.html — Wellex Group v U-Land Airlines, GR 167519, January 14 2015, main opinion: subsidiary rescission distinguished from Article 1191 resolution.
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