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OBLICON FINALS > POST MT OBLIGATIONS > Flashcards

POST MT OBLIGATIONS Flashcards

1
Q

Consignation

A

One of the modes of extinguishing an obligation.
A debtor resorts to consignation if the creditor rejects a valid payment or it’s not prudent or advisable for the debtor to pay the creditor – meaning tender of payment is excused.

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2
Q

What must the debtor do in a consignation?

A

Debtor must file an action in court for the purpose of placing the payment at the court’s disposal

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3
Q

If Creditor refused, does Debtor still have to pay interest + principal?

A

YES! Because D has not paid the obligation and continues to use the money. Tender of payment does not extinguish an obligation,

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4
Q

Will the debtor be considered in default, therefore has to pay the penalty?

A

No

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5
Q

Requirements for a valid consignation.

A
  • There must be a valid debt due
  • There must be an unjust refusal by the creditor after tender of payment or there must be a reason why the payment cannot be made
  • There must be prior notice to the parties interested in the fulfillment of the obligation
  • There must be actual consignation in court by having the thing deposited at the disposal of the judicial authority
  • Subsequent notice to the creditors as well
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6
Q

T or F: The debtor can consign when the creditor rejects the payment because the debtor paid early.

A

F. The creditor has the full benefit of the term so in consignation, the debt MUST be due.

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7
Q

What is a valid tender of payment?

A

Debtor manifests to the creditor that the debtor is ready to fulfill the obligation with an offer of immediate compliance.

NOTE: Anything short of showing the cash payment or other form of payment agreed upon by the parties will not amount as payment

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8
Q

When is tender of payment not a requisite to consignation?

A
  • When the creditor is absent or unknown, or does not appear at the place of payment;
  • When she is incapacitated to receive the payment at the time it is due;
  • When, without just cause, she refuses to give a receipt;
  • When two or more persons claim the same right to collect; or
  • When the title to the obligation has been lost.
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9
Q

When does the first situation happen?

A

In cases where there is no determinable creditor at that time, like in an instrument payable to bearer and you don’t know who the bearer is

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10
Q

Can the debtor tender payment and give prior notice simultaneously?

A

Yes, example – Borrower told Bank that Borrower would consign should Bank refuse to accept the tender of payment

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11
Q

What if the payment to be consigned is based on a contract of lease which is payable every month?

A

If it’s a lease contract and rent is due every month, the debtor has to repeat the steps every month.

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12
Q

Can a debtor set up an account and place all accruing debt in that account?

A

No, payments must be placed at the Court’s disposal. The debtor can set up an account upon the order and under the control of the court.

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13
Q

When is it best for the creditor to accept an incomplete payment consigned in the court?

A

Only accept when it’s deposited in court or after filing of the complaint.

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14
Q

Who pays for a valid consginment?

A

Creditor

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15
Q

BREAKDOWN OF STEPS:

A

Debt Due
Tender of payment → unjustly refused
First notice
Judicial Deposit
Second notice
Judicial approval/disapproval

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16
Q

When will the debt be considered paid?

A
  • Upon judicial approval of the consignation
  • Upon acceptance of the
    payment by the creditor without any reservation or qualification.
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17
Q

Can a creditor reserve the right to a full payment?

A

Yes

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18
Q

What is the retroactive effect of a valid consignment?

A

Judicial approval retroacts to the day of the judicial deposit.

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19
Q

Can debtor withdraw the deposit? When?

A

Yes, before the creditor has accepted the consignation
and before a judicial confirmation that the consignation has been properly made

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20
Q

Can creditor prevent withdrawal? How?

A

Yes, accepting the amount but with express reservations of other claims.

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21
Q

What is the doctrine of Legaspi?

A

Tender of payment enough to preserve the right of repurchase.

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22
Q

Doctrine of Heirs of Bacus?

A

In an option to buy, no need to consign, just need to merely inform your intent.

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23
Q

Hulganza Doctrine

A

Right to redeem is exercised through the filing of judicial action within the period of redemption prescribed by the law.

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24
Q

Define loss of the thing due.

A

Refers to legal or physical impossibility AFTER constitution of the obligation

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25
Q

Loss of a determinate thing

A

Extinguishes the obligation if the debtor is without fault or not in default

26
Q

Can a debtor be extinguised from liability if it was after default?

A

No, loss of the thing due w/o fault must be before default.

27
Q

Loss of a generic thing

A

Loss does not extinguish the obligation, unless the entire class becomes impossible.

28
Q

Loss in an obligation to do

A

Loss extinguishes the obligation when the prestation becomes impossible

29
Q

Presumption of fault

A

There is always presumption of fault on the part of the debtor because he was the one in control of the thing at the time of the loss.

30
Q

Why?

A

The debtor in possession of the thing is in the best position to avoid any damage or loss by exercising the appropriate diligence.

31
Q

How can the debtor free himself from liability?

A

Show he exercised the necessary diligence/invoke FE

32
Q

Who will be liable for the loss if the debtor can prove he is not at fault?

A

Creditor

33
Q

Who has the burden of proof when the debtor invokes a FE?

A

Burden of proof falls on the creditor that there was fault or default on the part of the debtor.

34
Q

REQUISITES OF DOCTRINE OF UNFORESEEN EVENT

A
  • The event or change in circumstance could not have been foreseen at the time of the execution of the contract.
  • It makes the performance of the contract extremely difficult but not impossible.
  • It must not be due to the act of any of the parties.
  • The contract is for a future prestation.
35
Q

What is condonation?

A

An act of liberality by virtue of which, without receiving any equivalent, the creditor renounces the enforcement of the obligation, which is extinguished in its entirety or in that part

36
Q

What is the nature of condonation?

A

Gratuitous

37
Q

Requirement

A

An express condonation must comply with the form of a valid donation

38
Q

What is the limitation of a condonation?

A

Subject to the rules governing inofficious donations i.e. impairing legitime of compulsory heirs

39
Q

Requirements of real/immovable property

A

1) Donation must be in a public instrument (notarized)
2) Donee must accept the donation in the same deed or in a separate public document made known to the donor

40
Q

Requirements of movable property

A

Value > 5,000 = donation and acceptance must be in writing
Value < 5,000 = verbal but with simultaneous delivery and acceptance

41
Q

What is confusion?

A

Debtor and the creditor become the same person with respect to the same obligation

42
Q

Does a guaranty or security get extinguished if the principal is extinguished?

A

YES, but extinction of the accessory contract will not extinguish the principal loan obligation.

43
Q

What is novation?

A

Substitution or change of the obligation by a subsequent one which extinguishes or modifies the first

44
Q

How do you novate?

A
  • Either by changing the object or principal conditions, or
  • By substituting another in place of the debtor, or
  • By subrogating a third person in the rights of the creditor
45
Q

What are the classifications of novation?

A

Extinctive or Total novation
Modificatory or Partial novation

46
Q

What is extinctive novation?

A

The old obligation is terminated and superseded by the new obligation (Extinction)

47
Q

What is modificatory novation?

A

Only certain terms and conditions of the original obligation are altered. The old obligation subsists to the extent that it remains compatible with the amendatory agreement

48
Q

Requisites of novation

A

A previous valid obligation
A new valid obligation
The new obligation extinguished or modifies the old obligation in terms of object and/or subjects/s

49
Q

Two modes for extinctive novation

A

An express agreement of the parties to extinguish the old obligation (express) or utter incompatibility of the old and new obligations (implied)

50
Q

What is objective novation?

A

Change of obligation, ex: dacion en pago

51
Q

What is subjective novation?

A

Change of a party or parties

52
Q

What are the kinds of debtor substitution?

A

Delegacion: Substitution of a debtor at the instance of the original debtor

Expromision: Substitution of the debtor without the knowledge or consent of the debtor

53
Q

KINDS OF CREDITOR SUBSTITUTION:

A

By agreement of the parties (conventional subrogation)
By operation of law (legal subrogation)

54
Q

PRESUMPTION OF LEGAL SUBROGATION:

A
  • A creditor pays a preferred creditor even without the debtor’s knowledge
  • Third party pays with the express or implied consent of the debtor
  • A person interested in the fulfillment of the principal obligation pays even without the debtor’s knowledge (
55
Q

Why may a guarantor be subograted to a creditor’s rights?

A

Because a guarantor is an interest party in the contracted

56
Q

If there is no consent or knowledge from the debtor is it under legal subrogation?

A

No

57
Q

T or F: Novation need not be clearly stipulated.

A

False

58
Q

May novation prevent criminal liability?

A

Yes, if novation happens before the attachment of criminal liability.

59
Q

WHO SHOULD CONSENT TO NOVATION?

A

GR: All parties to the old and new obligation

60
Q

What are the XPNs?

A

Legal subrogation through the payment by a creditor of a preferred creditor or expromission

61
Q
A

OBLICON FINALS (2 decks)

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