Payment – may consist not only in the delivery of money but also the giving of the thing, doing
of an act,
or not doing an act.
Burden Proof – is the duty of a party to present evidence of the facts in issue necessary to prove the
truth
Receipt – written and signed acknowledgment that money/goods have been delivered
Voucher – is a documentary record of a business transaction
Integrity of the Prestation – means that the prestation is to be fulfilled completely
Identity of the Prestation – very prestation due must be delivered or performed
Free Disposal of the Thing Due – means that the thing to be delivered must not be subject to any claim
or lien of a third person
Capacity to Alienate – means that the person is not incapacitated to enter into contracts and for that
matter, to make disposition of the thing due
Garnishment – proceeding for the purpose of subjecting a debtor's credit to the payment of his debt to
another
Dation in Payment – the conveyance of ownership of a thing by the debtor to the creditor as an
accepted equivalent of the performance of a monetary obligation
Judicial Cost – statutory amount allowed to a party to an action for his expenses incurred in the action.
Legal Tender – currency in which a debtor can legally compel a creditor to accept in payment of a debt in
money when tendered by the debtor in the right amount
Inflation – a sharp sudden increase of money or credit or both without a corresponding increase
Deflation – is the reduction in volume and circulation of the available money or credit
Devaluation – involved an official reduction in the value of one currency from an officially fixed level
Depreciation – refers to a downward change in the value of one currency in terms of the currencies of
other nations
Domicile – is the place of a person’s habitual residence
Application of Payment – the designation of the debt to which should be applied the payment made by
a debtor who has various debts of the same kind in favor of one and same creditor
Payment by Cession – the assignment or abandonment of all properties of the debtor for the benefit of
his creditor
Cession – the assignment of property is for the benefit of a creditor
Tender of Payment – (the debtor) offering to the creditor the thing or amount due
Consignation – the act of depositing the thing or amount due with the proper court when the creditor
does not desire, or refuses to accept the payment
Condonation or remission – the gratuitous renunciation by the creditor of his right against the debtor
resulting in the extinguishment of the latter’s obligation entirely
Confusion or Merger – the meeting in one person of the qualities of creditor and debtor with respect to
the same obligation
Compensation – is the extinguishment of the concurrent amount of the debt of two persons who, in
their own right, are reciprocally principal debtors and creditors of each other
- Total – when both obligations are of the same amount and entirely extinguished
- Partial – when two obligations are of different amounts and a balance remains
- Legal – when it takes place by operation of law when all the requisites are present
- Conventional – when it takes place by agreement of the parties
- Judicial – when it takes place by order from a court in a litigation
- Facultative – when it can be set up only by one of the parties
Novation – is the total or partial extinction of an obligation through the creation of a new one that
substitutes it
- Legal – takes place by operation of law
- Conventional – by the agreement of the parties
- Express – declared unequivocal
- Implied – when the old and new obligations are incompatible
- Total or Extinctive – when the old obligation is completely extinguished
- Partial or Modificatory – when the old obligation is merely modified (change an aspect)
- Real or Objective – when the object or principal condition changed
- Personal or Subjective – when the person changed
- Mixed – when both person and object changed
Expromision – when third person of his own initiatives and without the knowledge or against the will of
the original debtor assumes the latter’s obligation with the consent of the creditor
Delegacion – which takes place when the creditor accepts a thirs person to take the place of the debtor
at the instance of the latter
Subrogation – the substitution of one person in the place of another with reference to a lawful clain or
right
- Conventional – express agreement of the original parties
- Legal – without agreement but by operation of law
Assignment of Credit – has been defined as the process of transferring the right of the assignor to the
assignee who would then have the right to proceed against the debtor
