Explanation of Article 589
The article refers to the second situation in which the guarantor is discharged from the debt, and the creditor does not have the right to demand the guarantor or revert to him despite the guaranteed debt remaining with the debtor.
The article clarifies that if the debt becomes due and the creditor does not demand the debtor for payment, the guarantor's obligation is discharged if the following conditions are met:
First condition: The debt must become due, and the creditor neglects to demand the debtor; however, if the creditor has taken steps to demand the debtor, there is no room for excuse.
Second condition: The guarantor must not be jointly liable with the debtor; if he is jointly liable, his obligation is not discharged because the guarantor, in this case, is in the same position as the debtor.
Third condition: The guarantor must notify the creditor to take action against the debtor; this notification must be after the debt becomes due. If the notification is before the debt becomes due, the obligation is not discharged; the relevant time is when the original debt becomes due. If the creditor extends the term without the guarantor's consent, the guarantor has the right to notify the creditor after the original debt becomes due. The notification should be in accordance with what is stipulated in Article (177).
Fourth condition: A period of one hundred and eighty days must pass from the date of notification without the creditor taking action against the debtor.
Fifth condition: The creditor must not grant the debtor a term with the guarantor's consent; if the guarantor agrees to grant the term, his obligation is not discharged.
Once these conditions are met, the guarantor's obligation is discharged; the reason for this is to achieve the interest of resolving the unstable legal position of the guarantor, who sees himself as indefinitely obligated despite the due date of the guaranteed debt.
Related To
Article 589
If a debt becomes payable and the creditor does not demand the debtor to pay it, the surety may, if he is not a solidary debtor, notify the creditor to take action against the debtor. If the creditor fails to do so within 180 days from the date of notification, the surety shall be discharged from the suretyship even if the creditor grants the debtor a grace period, unless the surety consents thereto.