Practice question
A debtor's security disappears through a fortuitous event before the debt's due date. The debtor immediately provides new security equally satisfactory to the creditor. The creditor argues that disappearance necessarily destroys the debtor's use of the period regardless of replacement. Which answer follows Article 1198(3)?
- Any disappearance irrevocably removes the period
- The immediate equally satisfactory replacement falls within the statutory qualification preserving the period on this ground
- The debt is automatically forgiven
- The creditor must surrender every other contractual right
- The replacement must be rejected merely because the event was fortuitous
Legal references
- Civil Code Articles 1180 and 1193–1198: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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