Topic 7 - Performance of obligation

Question 1

payment

Answer 1

Payment is the fulfillment of the duty of performance agreed by the parties (not only to give an amount of money).
It is the most common way to extinguish obligations.

Question 2

Payment Requirements

Answer 2

Not any payment can extinguish an obligation. Requirements:

Identity: the payment must be the exact duty of performance agreed by the parties. The creditor cannot be forced to receive something different, not even if it is of equal or greater value than the performance owed.

b) Integrity and indivisibility: the performance has to be completely fulfilled. Partial performance is not permitted. Consequence: the creditor can refuse incomplete payment.

Question 3

Creditor’s delinquency

Answer 3

When the moment of performance arrives, the creditor is usually ready to receive payment.
However, there are cases in which the debtor cannot pay because the creditor refuses to receive payment. In these cases the law provides the debtor with a procedure to become released from his/her duty of performance.

Two stages:

i) The offer of payment: When payment is offered to the creditor and he/she refuses to take it
ii) The consignment of the thing due

Question 4

The consignment

Answer 4

For the consignment to be properly executed it needs to meet the following requirements:

a. The debtor must prove to the Judge that he/she has previously made the offer of payment to the creditor
b. The consignment should comply with the payment requirements or it shall be considered ineffective.
c. Once made, the consignment needs to be communicated to the creditor.

Question 5

Ways of extinguishing obligations

Answer 5

Article 1156 C.c: Obligations are extinguished by:
1.Their payment or due performance.

2. The loss of the thing due.
3. The remission of the debt.
4. The confusion of the rights of creditor and debtor.
5. The compensation (set-off)