Legal Terms

A-D

ACCION PAULIANA – an action where the creditor files an action in court for the rescission of
acts or contracts entered into by the debtor designed to defraud the former

ACCION REIVINDICATORIA – an action where the plaintiff alleges ownership over a parcel of
land seeks recovery of its possession

ACCION SUBROGATORIA – an action where the creditor whose claimes had not been fully
satisfied, may go after the debtors (third persons) of the defendant-debtor

ANNUITY – is any continuing payment with a fixed total amount

ANTI-CHRESIS – an agreement between the creditor and the debtor where the latter gives the
former the income from the property he/she has pledged in lieu of interest on his/her debt

CARTE BLANCHE – complete freedom to act as one wishes or thinks best

CERTIORARI – a writ or order by whicha higher court reviews a decision of a lower court

CLAIMS – a legal assertion or demand by a person who wants a payment, compensation or

reimbursement for a loss under a contract or an injury caused by negligence

COMMODATUM – a a gratuitous contract involving a proper loan, that is, loan of a thing where
the obligation is to return the goods in exactly the form in which it was lent

CONSIGNATION – the act of depositing the object of obligation to the court if the creditor
unjustifiably refused to accept the same or not in the position to accept it due to some reason or
circumstances

CREDITOR – an individual or an entity to whom money is due; “pinagkakautangan”

DEBTOR – an individual or an entity that is in debt to another; “may utang”

DEPOSIT – to place for safekeeping or in trust by the depositor, without any reward and which to
be returned when the depositor shall require it
I-L

INDEMNITY AGREEMENT – a contract where one party agrees to protect another party
against certain future claims or losses

INTESTATE SUCCESSION – the distribution when a person dies without leaving a valid will
for the spouse and heirs

LEGITIME – a portion of an estate which children or other close relatives can claim against the
decedent’s testament

LETTER OF CREDIT (L/C) – released by a bank in behalf of its client to ensure that correct and
prompt payment will be made to the supplier; when the buyer fails to make payment on the
purchase, the bank will be required to cover the amount of the purchase

LIENS – serves as a security for a debt or performance charge given by the debtor to the
creditor; it is the creditor’s qualified right over a specific property of his debtor

M-P

MORTGAGE – a document expressing the owner’s (mortgagor) will to pledge his/her property
title to a lender (mortgagee) as security for a loan according to a promissory note

MOTU PROPIO – a Latin term meaning “on his own impulse” that is used to refer to a document
that is issued and personally signed by the Pope which may contain instructional or administrative
matters of church law or governing bodies, or may be used to grant a special favor

OBLIGEE – an individual or entity to whom one is under obligation based on a contract or legal
agreement

OBLIGOR – an individual or entity that is bound to another for a certain debt or duty by means of
a contract or legal agreement

ONUS PROBANDI – evidence or burden of proof

PAWNBROKER – a person who lends money at interest on the security of an article pawned

PECUNIARY – anything relating to money; quantified in monetary terms

PENDENTE LITE – a Latin term referring to an order which in effect means “awaiting the lawsuit
or litigation”
PLEDGE – a serious promise, commitment or agreement to do or not do something

PRESTATION – a payment either in money or service; a performance of a duty whether or not to

do something as a fulfillment of an obligation

PROMISSORY NOTE – a signed document containing a written promise to pay a stated sum to a
specified person or the bearer at a specified date or on demand

Q-T

REMISSION – an act of liberality by virtue of which the obligee, without receiving any price or
equivalent, renounces the enforcement of the obligation, as a result of which it is extinguished in
its entirety or in that part or aspect of the same to which the remission refers

RES JUDICATA – a Latin term for “a matter (already) judged”

SALE – a transfer of property of any kind or of services in exchange for money (or anything of
value) or other terms agreed and considered by both parties

SECURITY – serves as the assurance of a debt payment or a fulfillment of an obligation

STIPULATION POUR AUTRUI – a contract or provision in a contract that confers a benefit on

a third-party a cause of action against the promisor for specific performance

SUBPOENA DUCES TECUM – a writ ordering a person to attend a court and bring relevant
documents

SUBROGATION – the substitution of one person or group by another in respect of a debt or

insurance claim, accompanied by the transfer of any associated rights and duties

TESTAMENTARY SUCCESSION – refers to succession from a legally executed testament