Chapter 4 Subsection 1 (Application of Payments) Flashcards
Art. 1252: He who has various debts of the same kind in favor of one and the same Creditor, may declare at the time of making the payment, _____. Unless the parties so ____ or when the application of payment is made by the party for whose benefit the term has been constituted, application shall not be made as to debts which _____. If the Debtor accepts from the Creditor a receipt in which an application of the payment is made, the former ______, unless _____
to which of them the same must be applied, stipulate, are not yet due, cannot complain of the same, there is a cause of invalidating the contract.
5 Requisites of Application of Payments:
1.) 1 Debtor and 1 Creditor, 2.) 2 or more debts 3.) The debts must be of the same kind 4.) The debts to which payment made by the Debtor has been applied must be due 5.) The payment made must not be sufficient to cover all the debts
Rules on Application of Payments. 1.) The Debtor has the ___ choice; he must indicate at the time of ____, and not afterwards, which particular debt is being paid. If in making use of his right, the Debtor applied the payment to a debt, he cannot later claim that _____. 2.) The right to make the application once exercised is ____ unless ____. 3.) If the Debtor does not apply payment, the creditor may make the designation by specifying in the ___ which debt is being paid. (The Debtor’s ____ is needed. The Debtor has the right to _____ the application made by the Creditor) 4.) If the Creditor has not also made the application or if the application is not valid, the debt, which ______, shall be deemed to have been satisfied. 5.) If the debts due are of the same nature and burden, the payment shall be applied to ______.
1.) first, making payment, it should be applied to another debt 2.) irrevocable, the creditor consents to the change 3.) receipt, consent, reject 4.) is most onerous to the Debtor among those due 5.) all of them proportionately
T/F: An application of payment made by the Debtor without objection from the Creditor is binding upon the latter. The Creditor’s acquiescence is equivalent to an agreement and has the force and efficacy of a contract.
TRUE
Art. 1253: If the debt produces interest, payment of the principal shall not be deemed to have been made until _____
the interests have been covered.
T/F: Art. 1253 (If the debt produces interest payment of the principal shall not be deemed to have been made until the interests have been covered.) is not subject to any agreement between the parties, or to waiver by the Creditor.
False. It is subject to any agreement between the parties, or to waiver by the Creditor.
Art. 1254: When the payment cannot be applied in accordance with the preceding rules, or if application cannot be inferred from other circumstances, the debt which is most ___ to the Debtor, among those due, shall be deemed to have been satisfied. If the debts due are of __________, the payment shall be applied to ______.
onerous, the same nature and burden, all of them proportionately
A debt is more onerous than another when it is ____
more burdensome to the Debtor
When a Debt is More Onerous than Another. 1.) An interest-bearing debt is ____ than a non-interest-bearing debt even if the latter is an _____. 2.) A debt as a sole debtor is ____ than as a solidary debtor. 3.) Unsecured debts are ____ than debts secured by a mortgage or by pledge 4.) Of 2 interest bearing debts, the one with a ____ is more onerous 5.) An obligation without a penalty clause is ___ than one with a penalty clause.
1.) more onerous, older one 2.) more onerous 3.) less onerous 4.) higher rate 5.) less onerous
If it cannot be definitely determined which debt is most onerous to the Debtor, the payment shall be applied to _____
all of them proportionately
