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Tender of Payment vs Consignation

The document discusses tender of payment, consignation, and the distinction between the two concepts. Tender of payment is when a debtor manifests a desire to pay an obligation, and if refused without cause, discharges the debtor after a valid consignation is made with the proper court. Consignation is the deposit of the proper amount with a judicial authority after a tender is refused. For consignation to be valid, there must be a prior tender, refusal by the creditor, notice of consignation, and actual deposit in court along with a second notice. Tender of payment is preliminary while consignation extinguishes the obligation, and consignation is judicial requiring filing in court unlike tender

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889 views2 pages

Tender of Payment vs Consignation

The document discusses tender of payment, consignation, and the distinction between the two concepts. Tender of payment is when a debtor manifests a desire to pay an obligation, and if refused without cause, discharges the debtor after a valid consignation is made with the proper court. Consignation is the deposit of the proper amount with a judicial authority after a tender is refused. For consignation to be valid, there must be a prior tender, refusal by the creditor, notice of consignation, and actual deposit in court along with a second notice. Tender of payment is preliminary while consignation extinguishes the obligation, and consignation is judicial requiring filing in court unlike tender

Uploaded by

Julie Velasquez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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TENDER OF PAYMENT

Tender of payment is the manifestation by the debtor of a desire to comply with or pay an
obligation. If refused without just cause, the tender of payment will discharge the debtor of the obligation
to pay but only after a valid consignation of the sum due shall have been made with the proper court.

CONSIGNATION
Consignation is the deposit of the [proper amount with a judicial authority] in accordance with
rules prescribed by law, after the tender of payment has been refused or because of circumstances which
render direct payment to the creditor impossible or inadvisable

Requisites of Consignation:

1. Presence of existing valid debt which is due


2. Presence of prior valid tender of payment
3. Refusal of creditor to accept amount or thing tendered
4. Presence of prior notice of consignation
5. Actual deposit of the amount or thing in court or competent authority
6. Second notice after the making of the deposit is mandatory
DISTINCTION BETWEEN TENDER OF PAYMENT AND CONSIGNATION

Basis Tender of Payment Consignation

It is the antecedent of consignation or It is the principal or consummating act for the


1. Nature
preliminary act to consignation. extinguishment of the obligation.

It extinguishes the obligation when declared


2. Effect It does not by itself extinguish the obligation.
valid.

It is judicial for it requires the filing of complaint


3. Character It is extrajudicial.
in court.

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