Chapter 4: Extinguishment of Obligations (Section 1)

Question 1

It may consist of not only in the delivery of money but also the giving of a thing, the doing of an act, or not doing of an act

Answer 1

Payment

Question 2

When the important or essential part of the contract has been performed and only small or minor part thereof has not been carried out

Answer 2

Substantial Performance

Question 3

The person who pays for the debtor is put into the shoes of the creditor

Answer 3

Subrogation

Question 4

The third person entitled by reason of payment has merely the bare right to be refunded

Answer 4

Reimbursement

Question 5

It means that the thing to be delivered must not be subject to any claim or lien or encumbrance of a third person

Answer 5

Free disposal of the thing due

Question 6

It means that the person is not incapacitated to enter into contracts and for that matter, to make a disposition of the thing due

Answer 6

Capacity to alienate

Question 7

It is the conveyance of ownership of a thing as an accepted equivalent of performance

Answer 7

Dation in Payment

Question 8

These are the statutory amounts allowed party to an action for his expenses incurred in the action.

Answer 8

Judicial Costs

Question 9

Is that currency which if offered by the debtor in the right amount, the creditor must accept in payment of a debt in money

Answer 9

Legal Tender

Question 10

It is a sharp sudden increase of money or credit or both without a corresponding increase in business transactions

Answer 10

Inflation

Question 11

It is the reduction in volume and circulation of the available money or credit, resulting in a decline of the general prove level

Answer 11

Deflation

Question 12

It is the place where a court suit or action must be filed or instituted

Answer 12

Venue

Question 13

It is the place of a person’s habitual residence; the place where he has his true permanent home and to which place he, whenever he is absent, has the intention of returning.

Answer 13

Domicile

Question 14

It is an element of domicile. Requires bodily presence as an inhabitant in a given place.

Answer 14

Residence

Question 15

It is the designation of the debt to which should be applied the payment made by a debtor who has various debts of the same kind in favor of one and the same creditor

Answer 15

Application of Payments

Question 16

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 to the satisfaction of their credits

Answer 16

Payment by Cession

Question 17

Is the act, on the part of the debtor, of offering to the creditor the thing or amount due

Answer 17

Tender of Payment

Question 18

Is the act of depositing the thing or amount due with the proper court when the creditor does not desire or cannot receive it, after complying with the formalities required by law

Answer 18

Consignation