Explanation of Article 580
The article refers to the gratuitous nature of the contract of guarantee, and based on this, it established two results:
The first paragraph clarified the first result of the guarantee contract being a gratuitous contract, where it stipulated that for the validity of the guarantee contract, the guarantor must be fully competent; because bearing the guarantee without compensation is considered an act that is purely harmful, and acts that are purely harmful by a person with diminished capacity are absolutely void, whether the diminished capacity is due to young age, insanity, idiocy, foolishness, or negligence. As for the creditor, the guarantee is purely beneficial for them, so full competence is not required.
The second paragraph clarified the second result of the guarantee contract being a gratuitous contract, which is that the guarantee from a person who is terminally ill does not take effect against the heirs, with a detailed ruling between two cases:
The first case: If the guarantee is for an heir; meaning the creditor to whom it was issued is an heir, or the guarantee is on behalf of an heir; meaning the guaranteed debtor is an heir, then the guarantee does not take effect against the rest of the heirs even if it is less than one-third unless they approve.
The second case: If the guarantee is neither for an heir nor on behalf of one, it takes effect if it is less than one-third of the estate, and does not take effect for more than one-third unless approved by the heirs.
The reason for these two rulings is that the gratuitous act of a terminally ill person is treated as a will in these two rulings, as detailed in Articles (354, 367).
Related To
Article 580
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A surety in a suretyship contract must be a fully competent person.
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If a terminally ill person enters into a suretyship contract as a surety, such contract shall not be deemed effective vis-a-vis his heirs with regard to the part that exceeds one-third of the estate, unless the heirs ratify the contract. If the beneficiary of the suretyship contract is an heir, whether as a debtor or a creditor, such contract shall not be deemed effective vis-a-vis the other heirs, even if the amount does not exceed one-third of the estate, unless the heirs ratify the contract.