Explanation of Article 370
The article clarified the validity of the gift of debt, whether it is monetary or non-monetary, and it is considered a discharge whether it occurs with the term "gift" or "discharge." Article (293) explained that the discharge is subject to the substantive provisions of donations, and no special form is required; thus, the gift of debt to the debtor is valid even without documentation or delivery, as the gift here is indirect; it does not involve the transfer of a real or personal right from the donor to the donee. It was previously explained in the commentary on Article (36) that the requirement for formality or tangibility applies only to direct gifts where there is a transfer of ownership from the donor to the donee.
The substantive provisions of donation apply to the gift of debt to the debtor, requiring for its validity that the donor has full legal capacity. The donor does not guarantee entitlement or defect, and creditors have the right to challenge its enforceability against them according to the conditions of the action for unenforceability. If it is issued by a person suffering from a terminal illness, it takes the ruling of a will, among other provisions.
Related To
Article 370
A gift may take the form of discharging a debtor from debt.