Chapter 4 - Section 1 – Payment or Performance

Question 1

Not only 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.

Answer 1

Payment

Question 2

Thing or service has been completely delivered or rendered.

Answer 2

Integrity of prestation

Question 3

The very prestation must be delivered or performed.

Answer 3

Identity of the prestation

Question 4

Recovery is allowed in case of ___________ ___________ __ ____ _____.

Answer 4

substantial performance in good faith.

Question 5

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

Answer 5

Substantial performance

Question 6

Persons from whom the creditor must accept payment.

Answer 6

The debtor;
Any person who has an interest in the obligation (like a guarantor); or
A third person who has no interest in the obligation

Question 7

Effect of payment by a third person - If made without the knowledge or against the will of the debtor

Answer 7

Recover from the debtor only insofar as the payment has been beneficial to the latter. The recovery is only up to the extent of the debt at the time of payment.

Question 8

Effect of payment by a third person - If made with the knowledge of the debtor

Answer 8

The payer have the rights of reimbursement and subrogation to recover what he has paid and to acquire all the rights of the creditor.

Question 9

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

Answer 9

Subrogation

Question 10

The third person entitled by reason of payment has merely the bare right to be refunded to the extent without the right to guarantees and securities of the original obligation.

Answer 10

Reimbursement

Question 11

The thing to be delivered must not be subject to any claim or lien or encumbrance of a third person.

Answer 11

Free disposal of thing due

Question 12

The person is not incapacitated to enter into contracts and for that matter to make a disposition of the thing due.

Answer 12

Capacity to alienate

Question 13

Person to whom payment shall be made.

Answer 13

The creditor or obligee (person in whose favor obligation has been constituted);
His successor in interest (like an heir or assignee); or
Any person authorized to receive it.

Question 14

Does not extinguished the obligations as to the creditor.

Answer 14

Payment to a Wrong Party

Question 15

Effect of payment to an incapacitated person.

Answer 15

Not valid unless such incapacitated person kept the thing paid or delivered, or was benefited by the payment.

Question 16

Effect of payment to a third person.

Answer 16

Not valid except insofar as it has redounded to the benefit of the creditor.

Question 17

The debtor is relieved from proving benefit to the creditor in case of:

Answer 17

Subrogation of the payer in the creditor’s rights;
Ratification by the creditor; or
Estoppel on the part of the creditor.

Question 18

Preliminary remedy

Answer 18

Attachment

Question 19

It is a judicial process by virtue of which a person is generally ordered to refrain from doing something.

Answer 19

Injunction

Question 20

The proceeding by which a debtor’s creditor is subjected to the payment of his own debt to another.

Answer 20

Garnishment

Question 21

Is the conveyance of ownership of a thing as an accepted equivalent of performance.

Answer 21

Dation in payment (adjudication or dacion en pago)

Question 22

Rule of the medium quality

Answer 22

Creditor cannot demand a thing of Superior Quality

Debtor deliver a thing of Inferior Quality

Question 23

When partial performance allowed

Answer 23

Express stipulation to that effect
Debt is in part liquidated and in part unliquidated
When the different prestations are subject to different terms or conditions

Question 24

Currency which if offered by the debtor in the right amount, the creditor must accept in payment of a debt in money.

Answer 24

Legal tender

Question 25

Payment by means of instruments of credits - Right of creditor to refuse or accept

Answer 25

Promissory notes, checks, bills of exchange and other commercial documents are not legal tender and the creditor cannot be compelled to accept them.

Question 26

Payment by means of instruments of credits - Effect of an obligation

Answer 26

Payment by means of mercantile documents does not extinguish the obligation:
until they have been cashed;
unless they have been impaired through the fault of the creditor.

Question 27

A sharp sudden increase of money or credit or both ; causes a drop in the value of money, resulting in the rise of the general price level.

Answer 27

Inflation

Question 28

Reduction in volume and circulation of the available money or credit, resulting in a decline of the general price level

Answer 28

Deflation

Question 29

Place where obligation shall be paid

Answer 29

Stipulation - designated place
Stipulation - specific thing - where the thing was
No stipulation - generic thing - domicile

Question 30

The place where a court suit or action must be filed or instituted.

Answer 30

Venue

Question 31

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

Answer 31

Domicile

Question 32

Only an element of domicile. It simply requires bodily presence as an inhabitant in a given place.

Answer 32

Residence

Question 33

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

Answer 33

Application of Payments

Question 34

More Onerous / Burdensome

Answer 34

Interest-bearing debt
Debt as a sole debtor
Debts secured by a mortgage
One with a higher interest rate
Obligation with a penalty clause

Question 35

The assignment 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 35

Payment by Cession

Question 36

The act on the part of the debtor offering to the creditor the thing or amount due.

Answer 36

Tender of Payment

Question 37

The act of depositing the thing or amount owed with the appropriate court.

Answer 37

Consignation

Question 38

(Tender of Payment and Consignation) Requisites:

Answer 38

Absent
Incapacitated
Refuses to give a receipt
Two or more person claims
Title of the Obligation is lost