Extinguishment of Obligations

Discuss the concept of dacion en pago. If you are the creditor in, what instances will you agree
to this arrangement? If you are the debtor, do you think this is a reasonable deal in contracting
an obligation and in ensuring its fulfillment?

Dation in payment, also known as dacion en pago, is a type of payment in which the
debtor gives something else to the creditor in exchange for the settlement of existing debt in
money. If the sale of a property is solely for protection and not to pay a loan, there is no dation.

If I were the creditor, in what instances I will agree to this arrangement. First, if we both
create an agreement to the substitution for a new obligation for an existing one, for example, we
decided that if he couldn't pay for the other half of his debt, he would give his PlayStation. Also,
if the dacion en pago will not prejudice me as the creditor, for example, the debtor is paying a
cellphone that comes from a thief, it means that it gives harm to the creditor, and it is not valid
for dacion en pago. And if I were the debtor, I think this is a reasonable deal in contracting an
obligation and ensuring my fulfillment because I give the transmission of ownership of a thing as
an accepted equivalent of the performance of the obligation to the creditor. In addition, it gives
me an alternative option to fulfill my obligation, if I couldn't pay my debt in cash.