Skip to content
Civil Law

Explanation of Article 185

Explanation of Article 185

This article addresses the statement of "cases of forfeiture of the debtor's right to the term," which is: the debtor loses his right to the term granted to him, and the debt becomes due.

The article stipulates that the debtor's right to the term is forfeited in the following cases:

  • First: If he is declared insolvent, meaning: a judicial ruling is issued declaring the debtor insolvent, and the debt becomes due.

  • Second: If he does not provide the agreed-upon debt guarantees, meaning: the debtor has committed to providing guarantees for the debt and has not provided them, in which case his right to the term is forfeited.

  • Third: If those guarantees are diminished by his action or due to a reason beyond his control, meaning: the guarantees provided by the debtor have decreased in value, have been removed, or have become insufficient for the debt, in which case his right to the term is forfeited unless he promptly completes them.

It should be noted that these cases do not affect the existence of the obligation but rather affect its enforceability, which are: the debtor's insolvency, failure to provide guarantees, and the diminution of guarantees.

This article is considered one of the most important articles related to the cases of forfeiture of the debtor's right to the term, and it clarifies the impact of these cases on the obligation.

Related To

Article 185

  1. If the disposition of a debtor whose debts exceed the value of his property is carried out only to unlawfully give priority to one creditor over another, such disposition shall only result in denying the creditor such priority.

  2. If a debtor whose debts exceed the value of his property pays the debt of any of his creditors prior to the maturity date of the debt, the other creditors may demand the invalidation of the payment of such debt. However, if the payment is made after the debt’s maturity date, the other creditors may not demand the invalidation of the payment of such debt, unless such payment is done in collusion with said creditor.