Explanation of Article 263
This article addresses the statement of the "effect of settlement," which is: that the settlement results in the extinguishment of the obligation, so the creditor is not entitled to claim the debt, and the debtor is not entitled to refrain from fulfillment.
The article stipulates that the settlement leads to the extinguishment of the obligation, for example: if a settlement is reached between the creditor and the debtor, the obligation is extinguished, and the creditor is not entitled to claim the debt again.
It is worth noting that this ruling 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 effect of settlement, as it clarifies the impact of settlement on the obligation.
Related To
Article 263
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If the person paying the debt subrogates a creditor, the rights of the creditor shall be transferred to him, including the modalities, attached rights, and securities of the debt as well as the defenses asserted. The subrogation shall be limited to the paid debt.
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If subrogation is limited to a part of the debt, the creditor shall have priority over the person paying the debt in satisfying the remainder of the debt, unless agreed otherwise.