Chapter 4 Subsection 3 (Tender of Payment and Consignation)

Question 1

Art. 1256: If the Creditor to whom tender of payment has been refused without just cause to accept it, the Debtor shall be ____ by the consignation of the thing or sum due. Consignation alone shall produce the same effect in the following cases: 1.) ___ 2.) ___ 3.) ___ 4.) ___ 5.) ____

Answer 1

released from responsibility, 1.) When the Creditor is absent or unknown, or does not appear at the place of payment; 2.) When he is incapacitated to receive the payment at the time it is due; 3.) When, without just cause, he refuses to give a receipt; 4.) When two or more persons claim the same right to collect; 4.) When two or more persons claim the same right to collect; 5.) When the title of the obligation has been lost. Tender of payment is also not required in th aforementioned 5 cases.

Question 2

Tender of payment is the ___

Answer 2

act, of the part of the debtor, on offering to the creditor the thing or amount due. The debtor must show that he has in his possession the thing or money to be delivered at the time of the offer

Question 3

Consignation is the ____

Answer 3

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 the law.

Question 4

T/F: Consigation (law) is always judicial and it generally requires a prior tender of payment which is, by its very nature, also judicial.

Answer 4

False. While consignation (law) is always judicial, the tender of payment by nature is extrajudicial

Question 5

Requisites of a valid consignation:

Answer 5

1.) Existence of a valid debt which is due 2.) Tender of payment by the Debtor and refusal without justifiable reason by the Creditor to accept it 3.) Previous notice of consignation to persons interested in the fulfillment of the obligation 4.) Consignation of the thing or sum due 5.) Subsequent notice of consignation made to the interest parties

Question 6

T/F: If, upon tender, the Creditor refuses to accept the payment wihtout any justifiable reason, D will still not be relived from payment of any interest from the date of tender.

Answer 6

False. because of the unjustified refusal of the Debtor, D will be relieved from payment of any interest from the date of tender.

Question 7

Requirements for valid tender of payment:

Answer 7

1.) Must comply with 1256-1258 2.) It must be unconditional and for the whole amount due and in legal tender 3.) It must be actually made.

Question 8

Art. 1257: In order that the consignation of the thing due may release the obligor, it must first be _____. The consignation shall be ineffectual if it is not made strictly in consonance with the _____.

Answer 8

announced to the persons interested in the fulfillment of the obligation, provisions which regulate payment

Question 9

In the absence of prior notice to the persons interested in the fulfillment of the obligation, the consignation, as payment, shall be ____

Answer 9

void

Question 10

The expenses of consignation shall be charged ___ and that in case of loss of the thing consigned, _____ shall bear the risk thereof

Answer 10

against the Creditor, the Creditor

Question 11

The general rulse is that an offer of a bank check for the amount due is _____ and this is true even though the check is ___ or is a manager’s check, except where _____.

Answer 11

not a good tender, certified, no objection is made on that ground.

Question 12

Art. 1258: Consignation shall be made by depositing the thing due at the disposal of _____, before whom the tender of payment shall be proved, in a proper case, and the announcement of the consignation in other cases. The consignation having been made, the____ shall also be notified thereof

Answer 12

judicial authority, interested parties

Question 13

T/F: Tender must be proved at all times by the debtor. (in consignation)

Answer 13

False. In other cases when tender is not required, only prior notice to interested persons of the consignation needs to be proved.

Question 14

Art. 1259: The expenses of consignation, when properly made, shall be charged ____

Answer 14

against the creditor

Question 15

When Consignation deemed properly made:

Answer 15

1.) When the Creditor accepts the thing or sum deposited, without objection, as payment of the obligation. 2.) When the creditor questions the validity of the consignation, and the court, after hearing, declares that it has been properly made. 3.) When the creditor neither accepts nor questions the validity of the consignation, and the court after hearing, orders the cancellation of the obligation.

Question 16

T/F: Once the consignation has been duly made, the debtor may ask the judge to order the cancellation of the obligation.

Answer 16

True. This is the first sentence of Art. 1260.

Question 17

T/F: Before the Creditor has accepted the consignation, or before a judicial declaration that the consignation has been properly made, the debtor cannot withdraw the thing or the sum deposited.

Answer 17

False. As stated in Art. 1260: “Before the Creditor has accepted the consignation, or before a judicial declaration that the consignation has been properly made, the debtor may withdraw the thing or the sum deposited, allowing the obligation to remain in force.”

Question 18

Art. 1261: If, the consignation having been made, the Creditor should authorize the Debtor to withdraw the same, he shall lose every preference which he may have over the thing. The ____, ___, and ___ shall be released.

Answer 18

co-debtos, guarantors, sureties

Question 19

In withdrawl of the consignment with the authority of the Creditor, the solidary debtors are released only from their ___, but not from their ____, since unlike guarantors and sureties, they are also principal debtors.

Answer 19

solidary liability, shares of the obligation