Glessy Anne C.

Caacaby II-BSBA-B

Discuss the following:

A. Payment in performance
 Payment may consist not only in the delivery of money but also the giving
of a thing (other than money), the doing of an act, or not doing of an act. So
basically there must be an obligation in order to fulfill it by giving a
payment or through performance. For example, if I buy a bag I have the
obligation to pay for it in order to extinguish the obligation. Payment and
performance are synonymous because payment is the obligation to give and
the performance is an obligation to do.
B. When debt is considered paid
1. Integrity of the prestation – this requisite means that the prestation
must be fulfilled completely. Meaning it is not capable of partial
fulfillment because the obligation will not be extinguished. For example,
Mary bound herself to pay Atasha 50,000 pesos on April 25, 2021. On
the said date Mary is giving only an amount of 45, 000 pesos. Therefore
Atasha can refuse to accept the payment of Mary because the fulfillment
of the obligation is not fulfilled completely.
2. Identity of the prestation – means that the very prestation due must be
delivered of performed. Meaning the prestation that was agreed upon by
both parties is the object that what exactly needed to perform or to give.
For example, an obligation to give an Iphone X, you cannot fulfill the
obligation by giving other object, the fulfilment of an obligation can only
be fulfill by the prestation which is the obligation to give an Iphone X.
C. Dation in payment
 It is the conveyance of ownership of a thing by the fdebtor to creditor as an
accepted equivalent of performance of a monetary obligation. This Dation in
Payment is a special form of payment it is a mode of extinguishment of an
obligation whereby debtor give property in order to satisfy the money or
monetary debt.
 In Dation in payment it shall be governed by law of sales because it partakes
in a sense the nature of sale. For example the creditor is buying the property
of the debtor and the payment is the debt of the debtor, since it is govern rule
 of sales meaning the obligation of the debtor must be deemed to extinguish
to the extent only of the value of the property.
D. Application of payment
 It is the designation of the debt to which should be applied the payment
made by a debtor who has various debt of the same kind in favor of one and
the same creditor. Meaning application of payment includes several debts of
the debtor to one and the same creditor. If the money of the debtor is not
enough to pay the debts the requisites of the application of payment must be
considered. The debtor makes the designation in which of his debts will be
pay, so application must be made at the time when payment by the debtor is
made.
E. Payment by cessions
 It is another special form of payment. It is the assignment or abandonment of
all the properties of the debtor for the benefit of his creditors in order that the
latter may sell the same and apply the proceeds thereof the satisfaction of
their credits. So meaning this is the process wherein all of the property of the
debtor will transfer to the creditors so the creditors may sell them and the
profit from it will be the payment to the debt.
F. Tender of payment and consignation
 Tender of payment is the act on the part of the debtor, of offering to the
creditor the thing or amount due. Meaning if it is a monetary obligation then
the offering to pay the money and if it is an obligation to give something
then the offering to give an object. This tender of payment is act of offering
it is a preparatory act for consignation.
 Consignation is the act of depositing the thing or amount due with the
proper court when the creditor cannot accept or refuses to accept the
payment. So meaning after you tender the payment the creditor cannot
accept or refuses to accept the payment then the debtor have an option to
consign it with the proper authority, the debtor will deposit it in the court the
payment or the object to extinguished the obligation