Explanation of Article 294
This article addresses the concept of "performance by substitution," which means that the debtor fulfills their obligation by providing something other than what was originally agreed upon, provided the creditor consents. The article states that performance by substitution occurs in two cases:
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First: If the performance is "something else," meaning the debtor fulfills their obligation by providing something other than what was originally agreed upon. For example, if the debtor was obligated to deliver a car and instead provides a sum of money, and the creditor accepts this, the obligation is discharged in this case.
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Second: If the performance is "a benefit," meaning the debtor fulfills their obligation by providing a different benefit than what was originally agreed upon. For example, if the debtor was obligated to build a house and instead provides another service, and the creditor accepts this, the obligation is discharged in this case.
It should be noted that performance by substitution must be "with the consent of the creditor," meaning the creditor must agree to the performance by substitution. It is not permissible for performance by substitution to occur without the creditor's consent.
This article is considered one of the most important articles related to performance by substitution, as it clarifies how obligations are discharged and the various methods of doing so.
Related To
Article 294
A debtor’s obligation shall be extinguished if he proves that his failure to perform is caused by a fortuitous event that makes performance impossible. The corresponding obligation, if any, shall also be extinguished.