Professional Documents
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The difference of Payment by Cession to Dation in payment, the Payment by Cession
is the abandonment by the debtor of all his properties for the benefit of the creditors,
so that, from their proceeds, the latter may obtain satisfaction of their credits. The
cession of property made by the debtor must be voluntary.,while the Dation in
Payment is when the debtor will deliver to the creditor a different thing where the latter
accepts it as an equivalent of the performance of the obligation.
2. Enumerate the essential elements of Legal Compensation. *
The following are the essential elements of legal compensation: 1) Each of the
debtors and creditors are bound principally to each other. 2) That both debts
are of the same consumable (fungible things). 3) That the debts are due. 4)
That the debts are due and demandable. 5) That neither of the debts are
subject to any case or controversy or has been ordered to be retained by the
court.
5. A owes B P500,000.00 due on March 10, 2020, however, when A tried to pay
B, the latter cannot be located. A is afraid that he may accidentally spend the
money that he will use to pay B. What can A do to relieve himself from the
obligation? Explain your answer fully. *
A can tender the money, that will offer the creditors payment and consign it for him to
relieve himself form obligation in order for the debtor must deposit it in the court. In
order to constitute the payment, there should be a tender and consignation.
6. A owes B P150,000.00 secured by C, B’s sister, as guarantor. A and C fell in love and
subsequently got married. B is now demanding payment from A. A argues that he no
longer has to pay B, because when C and him got married the obligation was already
extinguished by way of confusion or merger of the personalities of the debtor. Is A
correct? Explain your answer fully. *
No, because in Confusion or merger of rights may be defined as the ground of extinguishment
of the obligation which takes place from the time the personalities of the principal debtor and
the principal creditor are merged into one entity. In the Article 1276 the obligation is
extinguished if the merger or confusion takes place in the person of the principal of the debtor
or creditor. However, if the confusion involves any guarantor there is no extinguishment of the
principal obligation.
8. A bought a painting made by the painter Ben Cab. Before Ben Cab could
deliver the painting to A, an earthquake occurred which caused Ben Cab’s
studio where the painting was stored to collapse. What are the liabilities if Ben
Cab if any? Explain your answer fully. *
In this case Ben Cab don’t have any liabilities to A, and the obligation is extinguished
because the loss of the painting that is determinate thing which was caused by
fortuitous events. In the Article 1262, it stated that an obligation which consists in the
delivery of a determinate thing shall be extinguished if it should be lost or destroyed
without the fault of the debtor, and before he has incurred in delay.