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Civil Law

Explanation of Article 189

Explanation of Article 189

This article addresses the statement "agreement on payment when able," which means that the contracting parties agree that the debt will be paid when the debtor is able.

The article stipulates that if it is evident from the agreement that payment will only occur when able, the court shall set a deadline that is likely to allow for the ability to pay, taking into account the debtor's current and future resources and what is required by the diligence of a person keen on fulfilling their obligation. For example, if the contracting parties agree that the debt will be paid when the debtor is able, the court shall set a deadline that is likely to allow for the ability to pay, taking into account the debtor's current and future resources and what is required by the diligence of a person keen on fulfilling their obligation.

It is worth noting that this provision applies to all types of obligations, whether they are contracts, acknowledgments, discharges, or otherwise.

This article is considered one of the most important articles related to the agreement on payment when able, and it clarifies the impact of the agreement on payment when able on the obligation.

Related To

Article 189

  1. If a simulated contract is concluded, the bona fide creditors of the contracting parties and their particular successors may invoke such contract; they may also invoke the real contract and establish that the contract that prejudiced them was simulated.

  2. If the interests of the concerned parties are in conflict, and some invoke the simulated contract while others invoke the real contract, priority shall be given to the parties invoking the simulated contract.