Obligations+and+Contracts.printable

Debtor for net proceeds of things ceded of assigned

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Unformatted text preview: preference agreed upon, or in default of agreement, in the order ordinarily established by law DATION IN PAYMENT One creditor Not necessarily in state of financial difficulty Thing delivered is considered as equivalent of performance Payment extinguishes obligation to the extent of the value of the thing delivered as agreed upon, proved or implied from the conduct of the creditor CESSION IN PAYMENT Plurality of creditors Debtor must b partially or relatively insolvent Universality of property of debtor is what is ceded Merely releases debtor for net proceeds of things ceded of, assigned, unless there is a contrary intention 4. CONSIGNATION TENDER -the act of offering the creditor what is due him together with a demand that the creditor accept the same (When creditor refuses w/o just cause to accept payment, he becomes in mora accepiendi and debtor is released from responsibility if he consigns the thing or sum due) CONSIGNATION – the act of depositing the thing due with the court or judicial authorities whenever the creditor cannot accept or refuses to accept payment; generally requires prior tender of payment REQUISITES OF VALID CONSIGNATION: a. Existence of valid debt b. Consignation was made because of some legal cause - previous valid tender was Page 116 of 297 Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 unjustly refused or circumstances making previous tender exempt c. Prior Notice of Consignation had been given to the person interested in performance of st obligation (1 notice) d. Actual deposit/Consignation with proper judicial authorities nd e. Subsequent notice of Consignation (2 notice) EFFECTS: EXTINGUISHMENT OF OBLIGATION a. Debtor may ask judge to order cancellation of obligation b. Running of interest is suspended c. Before creditor accepts or before judge declares consignation has been properly made, obligation remains ( debtor bears risk of loss at the meantime, after acceptance by creditor or after judge declares that consignation has been properly made – risk of loss is shifted to creditor) CONSIGNATION W/O PRIOR TENDER – allowed in: a. Creditor absent or unknown/ does not appear at the place of payment b. Incapacitated to receive payment at...
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