Explanation of Article 297
This article addresses the explanation of "debt renewal," which is: the extinguishment of a debt by creating a new debt in its place. The article stipulates that debt renewal occurs in two cases:
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First: "Real Renewal," which is: when there is a change in one of the parties to the debt, or in the subject of the debt, or in the cause of the debt. For example, if a person owes another a certain amount, and then the two parties agree to replace this debt with another debt, or replace the debtor with another debtor, or replace the creditor with another creditor, in this case, the debt is genuinely renewed.
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Second: "Fictitious Renewal," which is: when there is a change in one of the parties to the debt, or in the subject of the debt, or in the cause of the debt, but it is fictitious, meaning there is no real change. For example, if a person owes another a certain amount, and then the two parties agree to replace this debt with another debt, but it is fictitious, in this case, the debt is not renewed, and the old debt remains in effect.
It is worth noting that debt renewal leads to the "extinguishment of the debt," so no legal effect is attached to the old debt after the renewal.
This article is considered one of the most important articles related to debt renewal, as it clarifies how the obligation is extinguished and enumerates its methods.
Related To
Article 297
Without prejudice to any legal provision, a claim for any of the following rights made against a party denying such rights may not be heard upon the lapse of one year:
a) Rights of merchants for goods and services provided to persons not trading therein.
b) Rights of owners of establishments designated to accommodate guests, restaurants, and the like, which arise from engaging in such activities.
c) Rights of wage-earners from daily and non-daily wages and from the cost of the things they provide.