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Expenses Are Born by The Creditor

Creditors are responsible for the expenses of consignation if they refuse payment from debtors without valid reason, necessitating consignation. However, expenses are charged to debtors if consignation is not performed properly, such as when the creditor does not accept the deposit, questions its validity and the court sides with the creditor, or the creditor neither accepts nor questions it and the court orders cancellation. A proper consignation requires the debt being due, tender of payment refused without cause, notice to interested parties, actual deposit of the sum due, and notice that consignation was made.

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75 views1 page

Expenses Are Born by The Creditor

Creditors are responsible for the expenses of consignation if they refuse payment from debtors without valid reason, necessitating consignation. However, expenses are charged to debtors if consignation is not performed properly, such as when the creditor does not accept the deposit, questions its validity and the court sides with the creditor, or the creditor neither accepts nor questions it and the court orders cancellation. A proper consignation requires the debt being due, tender of payment refused without cause, notice to interested parties, actual deposit of the sum due, and notice that consignation was made.

Uploaded by

Alyssa Mae Ogao-ogao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ART. 1259.

EXPENSES ARE BORN BY THE CREDITOR


So creditors are responsible for the payment of the consignation because he is at fault when he refused
to accept the payment due without a valid reason, which then consignation was necessary. \
HOWEVER, Expenses are chargeable to the debtor if the consignation is not properly made

So how can you say if there is a proper consignation:

1. When the creditor accepts the thing or sum deposited, without objection, as payment of the
obligation (Art. 1260, par 2)
2. When creditor questions the validity of consignation, and court deems it valid
3. When creditor neither accepts nor questions validity, and court orders cancellation (Art 1260
par.2)

Let us also remember the requisites of Consignation to determine whether if there was a proper
consignation:
1. Debt is already due
2. Tender of payment made but the creditor refuses to accept payment without a valid cause
3. Notice of consignation to the interested persons is given
4. Actual Consignation of the sum due
5. Notice to the interested person that consignation was made must be given

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