Objectives
At the end of the study of this unit, you will be able to:
Explain the rights of heirs of the contracting parties;
Discuss the rights given to creditors of the parties;
Distinguish simulated contracts from real contract (counter deed);
Explain the preservatory measure or oblique actions that may be taken by creditors; and
Discuss the action of revocation or paulian action.
Heirs are the other category of third party who may benefit or be obliged by the contract made by the principal contracting parties. They continue the person of the deceased, provided, of course, they have accepted the succession. The continuity of rights or obligations by heirs is provided under Article 1986 of the Civil Code.
However, such continuity may be limited to two instances. These are where the nature of the contract doesn't provide room for substitution of the heirs; and where the parties agreed to restrict the continuity of rights and obligation by heirs. Thus, they will assume his contractual obligations, unless otherwise provided, or where the nature of the obligation prevents it (contracts "intuitu personae")
As you remember, in the principal contract there may be stipulation for the benefit of third party. It means in the contract, there is a third party beneficiary based on the contract made between the stipulator and promissor as per Articles 1957 and the following.
The question is: what would happen in cases of death of the third party beneficiary?
In the line with what was said above in respect of stipulations for third party beneficiaries (see Articles 1957 and following) the heirs of such a party are entitled to the performance of the obligation considered, if the deceased had already accepted the stipulation but dies before receiving the performance.
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