b) When through the fault of the creditor, have been impaired. In the meantime, the action derived from the original obligation shall be held in the abeyance. Abeyance - state of temporary suspension Art.1250:In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the time of the establishment of the obligation shall be the basis of payment., unless there is an agreement to the contrary. Inflation - sharp increase of money or credit, or both, without a corresponding increase in business transaction. Extraordinary Inflation - an unusual decrease in the purchasing power of currency and such decrease could not be reasonably foreseen or was manifestly beyond the contemplation of the parties at the time of the obligation. Extraordinary Deflation - inverse situation of extraordinary inflation. Requisites of extraordinary inflation/deflation 1. Official declaration of extraordinary inflation or deflation from the Bangko Sentral ng Pilipinas. 2. Obligation was contractual in nature. 3. Parties expressly agreed to consider the effects of the extraordinary inflation or deflation. Art.1251: Place of payment of obligation: 1. Payment shall be made in the place stipulated by the parties. 2. If there is no stipulation and the obligation is to deliver a determinate thing, payment shall be made wherever the thing might be at the moment the obligation was constituted. 3. In any other cases, place of payment shall be the domicile of the debtor. If the debtor changes his domicile in bad faith or after he has incurred delay, additional expenses shall be borne by him. These provision are without prejudice to venue under the Rules of Court. Venue - place where civil action must be filed or instituted. Civil Action - one by which party sues another for the enforcement or protection of a right, or the prevention or redress of a wrong. Special Forms of Payment: 1. Application of Payment 2. Dation of Payment 3. Payment by Cession 4. Tender of Payment and Consignation
SUBSECTION 1. - APPLICATION OF PAYMENTS Art.1252:He who has various debts of the same kind in favor of one and in 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 obligation of the same kind in favor of the same creditor. Requisites of Application of Payment 1. Only one debtor and one creditor 2. Two or more debts of the same kind 3. All debts must be due 4. Amount paid by the debtor must not be sufficient to cover the total amount of all debts.
You've reached the end of your free preview.
Want to read all 8 pages?
- Summer '17
- Jane Louis
- Debt, Debtor, Consignation, provisions of article