Name: Narbonita, Ranilyn M.

BSBA -2

I. Define

1. Payment

- The fulfillment of a promise; the performance of an agreement. A delivery of money or its

equivalent in either specific property or services by a debtor to a creditor.

2. Dation in payment

- is a special form of payment where the ownership of property is transferred to his creditor to pay a
debt in money.

3. Application of payment

- It is the designation of the debt to which payment shall be applied when the debtor owes several
debts in favor of the same creditor.

4. Payment by cession

- is the abandonment or assignment by the debtor of all his property in favor of his creditors so that
the latter may sell them and recover their claims out of the proceeds.

5. Consignation

- it is the act of depositing the sum or thing due with the judical authorities whenever the creditor
refuses without just cause to accept the same.

II. Discussion

1. According to requisites of consignation the debtor shall be released from responsibility by the
consignation of the thing or sum due.

2. Belen owes Kris ₱60,000.00 and Tammy ₱20,000.00. All the obligations are due and demandable but
Belen's assets only worth ₱50,000.00. In result of that she offers to divide her assets to Kris and Tammy
so that they may sell them and apply the proceeds to their respective claims. Kris and Tammy accept the
offer. If the assets are sold only for ₱40,000.00 then Belen will be released from his obligation only up
that amount, unless the creditors agreed to set her free for all of her debts.

3. (1) In payment by cession there are several creditors while in dation (see Art. 1245.), there is usually
only one creditor.

(2) In cession, the debtor is insolvent at the time of assignment while in dation it does not presuppose
the insolvency of the debtor or a situation of financial difficulties.
 (3) In cession it extends to all the property of the debtor subject to execution while in dation it does
not involve all the property of the debtor.

III. Problem

1. For me, D can apply since there is only one creditor but it doesn't mean that D's obligation can be
totally extinguish. It can only be if D pays all of his/her debts.

2. (1) Yes according to article 1236.

(2) C can never refuse G's offer to pay of D's debt because G is a guarantor of D.

3. Yes, especially that D pays T without the knowledge of C and to make it legal that D already paid
his/her debt.