Castro, Lheanna Liquido

BSA 1

Explain briefly the rule or reason for your answer.

1. D owes C P100,000.00. On due date, D pays C a check in the said amount but C refused to
accept payment without just cause. D consign the check in court and requested the court to
declare that the obligation has been extinguished.
a. Is C's refusal to accept payment valid? Explain
No. D's offered a payment towards C and He refused to accept the payment without any
just cause. If the check is valid and C refuses to accept it without any reason, C may have recourse
through the legal doctrines of tender of payment and cosignation.
b. Is there a valid consignation?
Yes. There is a valid cosignation because; (1) There is an existence of a valid debt; (2) He
made a tender of payment and the refusal of C without any justifiable reason to accept it, these
two statement represents the requisites for valid cosignation. He also needs to give a prior notice
to the persons interested in the fullfilment of the obligation, without this notice, the cosignation,
as D's payment will be void. D's obligation will not be extinguished until he has made a valid
cosignation. The refusal by C to accept the offer to be without just cause will not have the effect
of payment but he will be removed from payment of any interest from the date of tender.

2. Make a comparative study between dation in payment vs. payment by cession.

The dation in payment and payment by cession are both special forms of payment that can
be done by the debtor but there are instances that are need to considered before we can apply
these forms of payment. It is an act of the debtor in paying his debts to creditor and satisfied
them.

Dation in payment Payment cession

There is only one creditor
The debtor is not really supposed to be
insolvent
All of the property of the debtor is not involve
The property that is given is already owned by
the creditor
The extent only of the value of the property
agreed upon unless there's an agreement that
they have considered the property as full
payment, then the obligation will be
extinguished
Is an act of novation
There are 2 or more creditors
The debtor must be (partially) insolvent.
Extends all the property up until it satisfied the
debts.
Assigning all of the property of the debtor does
not mean owning but acquiring his right to sell
the property and apply the net proceeds of
sale as payment of his debts
If the value of the property is not enough to
cover all the debts then the debtor is still liable
for the remaining debt.
Is not an act of novation
2. Enumerate the cases when loss of specific thing to be delivered will not exempt the debtor
from liability even in the absence of fault or delay.
(1) When to deliver a determinate thing arises from crime
(2) When the debtor has promised the same thing to two different person who
does not have the same interest
(3) When the law or stipulation provides
(4) When the nature of the obligation requires the assumption of risk

3. Will partial loss of a specific thing to be delivered extinguish the obligation? Explain.
It depends on the circumstances of the partial loss that is determined by the court. There is a
partial loss that might affect the obligation wherein the creditor may not fullfil the purpose of his
own because of the partial loss, then the debtor will be liable for the value of the specific thing
with indemnity right for damages. But the obligation will only be extinguished when the purpose
of the creditor to the specific thing is not affected by the partial loss then the debtor can still
deliver the specific thing.

5. Enumerate the requisites in order that a condonation or remission of debt may be

considered valid.
(1) It must be gratuitous
(2) It must be accepted by the obligor
(3) The parties must have the capacity
(4) It must not be inofficious
(5) If made expressly, it must comply with the forms of donations