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Questions and Answers
In which situation can the court decree the rescission claimed?
In which situation can the court decree the rescission claimed?
What is the term that should be used for the remedy of rescission according to Paras?
What is the term that should be used for the remedy of rescission according to Paras?
To which contracts is the provision regarding rescission not applicable?
To which contracts is the provision regarding rescission not applicable?
What must be identical for the rescue of a contract to be demanded?
What must be identical for the rescue of a contract to be demanded?
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Which remedy involves surrendering whatever has been received from the other party?
Which remedy involves surrendering whatever has been received from the other party?
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Who should be capable of performing their own obligations to demand rescission?
Who should be capable of performing their own obligations to demand rescission?
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What is the primary benefit of a term for the creditor?
What is the primary benefit of a term for the creditor?
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In the scenario described, why does the creditor have the right to demand payment before December 5?
In the scenario described, why does the creditor have the right to demand payment before December 5?
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In the absence of a fixed period in an obligation, what may the courts do if it can be inferred that a period was intended?
In the absence of a fixed period in an obligation, what may the courts do if it can be inferred that a period was intended?
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What is the significance of a resolutory period in obligations?
What is the significance of a resolutory period in obligations?
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What does it mean when the text mentions 'judicial period'?
What does it mean when the text mentions 'judicial period'?
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Why is it important for courts to determine a probable period contemplated by parties in obligations?
Why is it important for courts to determine a probable period contemplated by parties in obligations?
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What happens when an obligation does not state and intend a period?
What happens when an obligation does not state and intend a period?
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Under what circumstances can the court not fix a period in an obligation?
Under what circumstances can the court not fix a period in an obligation?
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What can cause a debtor to lose every right to make use of the period according to Article 1198?
What can cause a debtor to lose every right to make use of the period according to Article 1198?
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When does the debtor lose every right to make use of the period if becoming insolvent?
When does the debtor lose every right to make use of the period if becoming insolvent?
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What happens when a debtor impairs guaranties or securities after their establishment?
What happens when a debtor impairs guaranties or securities after their establishment?
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In what situation does a debtor attempt to abscond according to the text?
In what situation does a debtor attempt to abscond according to the text?
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Study Notes
Fixing a Period in Obligations
- When no period is mentioned, but it is inferable from the nature and circumstances of the obligation, the court can fix a period.
- The court can also fix a period when it depends on the will of the debtor.
- The court must fix the duration to prevent the possibility that the obligation may never be fulfilled or to cure a defect in a contract.
Limitations on Court-Fixed Periods
- The court cannot fix a period if there is a period agreed upon by the parties and it has already lapsed or expired.
- Once the parties give their acceptance and consent to the period fixed by the court, it becomes a law governing their contract.
Debtor's Loss of Rights
- The debtor loses every right to make use of the period in certain circumstances, such as:
- Becoming insolvent unless they give a guaranty or security for the debt
- Failing to furnish promised guaranties or securities
- Impairing or allowing the disappearance of guaranties or securities
- Violating any undertaking in consideration of which the creditor agreed to the period
- Attempting to abscond
Rescission of Reciprocal Obligations
- Rescission is a remedy applicable to reciprocal obligations where two parties are mutually debtor and creditor of each other in the same transaction.
- The cause must be identical, and the obligations must arise simultaneously.
- The party who can demand rescission must be the party who is ready, willing, and able to comply with their own obligations while the other is not capable of performing their own.
Remedies and Effect of Rescission
- Remedies include specific performance or fulfillment of obligation with damages, and rescission of contract with damages.
- The effect of rescission is that the parties must surrender whatever they have received from the other, and the obligation to pay is extinguished.
Term and Beneficiary
- The term is for the benefit of the creditor, who may demand fulfillment even before the arrival of the term.
- The debtor cannot require the creditor to accept payment before the expiration of the stipulated period.
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Description
Test your understanding of interpreting obligations when no period is mentioned in a contract, and learn when the court may need to fix the duration of the period. Explore scenarios where the period is inferable or dependent upon the will of the debtor.
