Practice question
After a debt with a future due date is contracted, the debtor becomes insolvent and provides no guaranty or security. The debtor insists the creditor must wait solely because the calendar date has not arrived. Which rule governs?
- The debtor always keeps the period despite later insolvency
- Article 1198 permits loss of the period when the debtor becomes insolvent after contracting unless security is given
- Insolvency automatically makes the creditor owner of every asset
- The period can be lost only after the creditor dies
- The rule applies only to gifts
Legal references
- Civil Code Articles 1180 and 1193–1198: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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