LESSON 1 PART 2 Flashcards
occurs when the debtor transfers ownership of a
property to the creditor as a means of extinguishing a debt. It is a form of payment where instead of paying cash, the debtor offers something else to settle the obligation. This form of payment is considered as a novation of the obligation, where the original obligation is substituted with a new one. In the case of mortgages, for instance, if a person cannot pay the
installments, he surrenders the house and settles the mortgage loan. This is essentially settling the debt by paying with an asset in lieu of money.
Dación en pago (payment in lieu)
In sale, there is no pre-existing credit, while in dacion en pago, there is a pre-existing credit.
TRUE
A sale extinguishes obligations, while dacion en pago creates obligations
FALSE
In sale, the cause or consideration is the price, from the seller’s point of view, and the delivery of the object, from the buyer’s point of view. In dacion en pago, the cause or consideration is the extinguishment of the obligation, from the debtor’s point of view; and the delivery of the object given in place of the credit, from the creditor’s point of view.
TRUE
In sale, there less freedom in fixing the price, while in dacion en pago, there is more freedom in fixing the price because of the amount of the pre-existing credit which the parties seek to extinguish.
FALSE
involves a debtor assigning or surrendering all his or her assets to creditors so they may sell them and apply the proceeds to satisfy outstanding obligations.
Cession in payment
that which “consists in the abandonment of all the
property of the debtor for the benefit of his creditors in order that the latter may apply the proceeds thereof to the satisfaction of their credits
cession
In sale, there is no pre-existing credit, while in payment by cession, there are pre-existing credits.
TRUE
A sale extinguishes obligations, while payment by cession creates obligations
FALSE
In sale, the cause or consideration is the price, from the seller’s point of view; and the delivery of the object, from the buyer’s point of view. In payment by cession, the cause or consideration is the extinguishment of the obligation, from the debtor’s point of view; and the assignment of the things to be sold, from the creditors’ point of view.
TRUE
In sale, there is less freedom in fixing the price, while in payment by cession, there is greater freedom in fixing the price because of the fixed amount of the pre-existing credits which the parties seek to extinguish.
FALSE
In sale, the ownership of the thing is transferred to the buyer. In payment by cession, the creditors do not become the owners of the properties assigned to them but are merely given the right to sell such properties and apply the proceeds to their claims.
TRUE
the contractor binds himself to execute a piece
of work for the employer, in consideration of a certain price or compensation. The contractor may either employ only his labor or skill, or also furnish the material.
contract for a piece of work
In a contract for work, labor or materials or for a piece of work, the thing transferred is one not in existence and which never would have existed but for the order of the party desiring to acquire it, while in a contract of sale, the thing transferred is one which would have existed and been the subject of sale to some other person, even if the order had not been given.
TRUE
In the first case, the risk of loss before delivery is borne by the worker or contractor, not by the employer (the person who ordered) (Arts. 1717,1718, ibid.) and in the second, the risk of loss is borne by the buyer. (Arts. 1480,1538,1189, ibid.)
TRUE
Contracts for a piece of work, unlike “contracts of sale,” are within the Statute of Frauds
FALSE
refers to an act of trading between two or more parties that involves the provision of one good or service by one party for another good or service by another party, but this does not necessarily involve the use of money, or even a monetary medium like a
credit card.
Barter
In sale, the cause or consideration is in money. In barter, the cause or consideration is in another thing.
TRUE
The contract is one of barter if the value of the thing given as part of the consideration exceeds the monetary consideration
TRUE
The contract is one of BARTER if the monetary consideration is more than or equal to the value
of the thing given as part of the consideration. (Art. 1468)
FALSE(SALE)
