Practice question
A valid substitution was made without the original debtor’s knowledge and released that debtor. The new debtor’s earlier publicly known insolvency is invoked solely to apply 1295’s delegación exception, with no separate fraud or guaranty basis. Which is best?
- Every substitution has identical insolvency consequences.
- Identify the actual substitution type; the delegación exception is not automatically imported into 1294’s stated expromisión setting.
- Public insolvency always defeats 1294 regardless of its text.
- The original debtor must always guarantee the new debtor.
- No creditor consent is ever needed.
Legal references
- Civil Code Articles748,1236-1237,1270-1299 and1302: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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