- Statute
- Civil Code
- Article
- Art. 1629
- Topic
- Assignment of Credits and Other Incorporeal Rights
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE VI SALES
- Chapter
- CHAPTER 8 Assignment of Credits and Other Incorporeal Rights
- Formerly
- Art. 1530a of the old Civil Code
- Year
- 1949
- Cited by
- A Supreme Court decision
The provision
In case the assignor in good faith should have made himself responsible for the solvency of the debtor, and the contracting parties should not have agreed upon the duration of the liability, it shall last for one year only, from the time of the assignment if the period had already expired. If the credit should be payable within a term or period which has not yet expired, the liability shall cease one year after the maturity. (1530a)
Intellegal Wiki · In plain terms
If someone who assigns a credit, acting in good faith, guaranteed that the debtor is solvent but the parties set no time limit on that guarantee, it lasts only one year. That year runs from the date of assignment if the debt was already due, or from the debt's maturity if the term had not yet expired.
An editorially maintained plain-language explanation of this provision — not legal advice.
Cases applying this article
- Atok Finance Corporation v. Court of Appeals G.R. No. 80078