Chapter 4 Subsection 2 (Paymeny by Cession)

Question 1

Art, 1255: The Debtor may cede or assign his property to his Creditors in payment of his debts. This cession, unless _____, shall only release the Debtor from responsibility for the _____ of the thing assigned. The agreements which, on the effect of the cession, are made between the Debtor and his Creditors shall be governed by ____.

Answer 1

there is stipulation to the contrary, net proceeds, special laws

Question 2

Payment by cession is the _____

Answer 2

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.

Question 3

Requisites of Payment by Cession:

Answer 3

1.) There must be 2 or more Creditors, 2.) The Debtor must be (partially) insolvent, 3.) The assignment must involve all the properties of the Debtor, 4.) The cession must be accepted by the Creditors

Question 4

Unless there is a ______, the assignment does not make the Creditors the owners of the property of the Debtor and the Debtor is released from his obligation only up to the _____ of the property assigned. The debtor is ____ if there is a balance.

Answer 4

stipulation to the contrary, net proceeds of the sale, still liable

Question 5

Differences between payment and cession. 1.) In dation, there is/are usually ______ creditor/s, while in cession, there is/are ______ creditor/s. 2.) Dation does not presuppose the ____; while in cession the Debtor is _____ at the time of assignment. 3.) Dation does not involve ____ the property of the debtor; while cession extends to ____ the property of the debtor subject to execution. 4.) In dation, the Creditor becomes the ___ of the thing given by the Debtor; while in cession the Creditors only acquire ____ and apply the proceeds to their credits _____. 5.) Dation is really an act of ____ while cession is not an act of _____.

Answer 5

1.) there is usually only one creditor, there are several creditors 2.) insolvency of the Debtor, insolvent 3.) all, all 4.) owner, the right to sell the thing, proportionately 5.) novation, novation