Explanation of Article 278
This article addresses the statement of "Effects of Debt Assignment," which are: the consequences that result from the assignment of debt. The article stipulates that the effects of debt assignment include:
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First: "Transfer of the debt to the new debtor," which means that the new debtor becomes responsible for the debt, and the creditor has the right to demand the debt from them.
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Second: "Discharge of the original debtor," which means that the original debtor is released from the debt, and the creditor does not have the right to demand the debt from them again.
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Third: "Transfer of guarantees and appurtenances," which means that the guarantees and appurtenances provided for the debt transfer to the new debtor, such as: mortgage, surety, interest, and the like.
It should be noted that this provision applies to all types of debts, whether they are contracts, acknowledgments, discharges, or otherwise.
This article is considered one of the most important articles related to the effects of debt assignment, as it clarifies the impact of debt assignment on the obligation.
Related To
Article 278
A debtor shall bear the expenses of performance, unless an agreement or a legal provision stipulates otherwise.