Art. 1251. Payment shall be made in the place designated in the obligation. There being no express stipulation and if the undertaking is to deliver a determinate thing, the payment shall be made wherever the thing might be at the moment the obligation was constituted. In any other case, the place of payment shall be the domicile of the debtor. If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him. These provisions are without prejudice to venue under the Rules of Court. Place of payment: If there is a stipulation, the payment shall be made in the place designated (par. 1; see Art. 1306.); If there is no stipulation: Obligation Place of payment Deliver a determinate thing Place where the thing might be at the time the obligation was constituted Any other case Domicile of the debtor (unilateral obligations) The order as above enumerated is successive and exclusive as may be gleaned from the provision itself. Venue –the place where a court suit or action must be fi led or instituted. (Secs. 1-4, Rule 4, Rules of Court.) Domicile —place of person’s habitual residence Subsection 1. — Application of Payment Art. 1252. He who has various debts of the same kind in favor of one and the same creditor, may declare at the time of making the payment, to which of them the same must be applied. Unless the parties so stipulate, or when the application of payment is made by the party for whose benefit the term has been constituted, application shall not be made as to debts which are not yet due. If the debtor accepts from the creditor a receipt in which an application of the payment is made, the former cannot complain of the same, unless there is a cause for invalidating the contract. Application of payment —designation of the debt to which the payment must be applied when the debtor has several obligations of the same kind in favor of the same creditor. Requisites: (1) One debtor, one creditor. (2) Two (2) or more debts of the same kind.
a. Exception: if at the time the designation or application is made, such obligations had already been converted into obligations to indemnify with damages by reason of breach or nonfulfillment. (3) All debts must be due. a. Exception: i. when there is a stipulation to the contrary ii. the application of payment is made by the party for whose benefit the term or period has been constituted. (4) Amount paid by the debtor not sufficient to pay the total amount of the debt. The application of payments as to debts not yet due cannot be made unless: (1) There is a stipulation that the debtor may so apply; or (2) It is made by the debtor or creditor, as the case may be, for whose benefit the period has been constituted. (see Art. 1196; also Art. 1792.) Right to designate belongs primarily to the debtor, only at the time when payment is made.
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- Fall '15
- Debt, Payment, Debtor, Consignation