OBLIGATION REVIEWER PT. 3

The following are the requisites of a valid payment, except

• a. The payment must be in accordance with the terms and conditions of the obligation.

• b. The person paying (debtor) as well as the one receiving (creditor) payment should have the required capacity.

• c. It should be made by the debtor to the creditor

• d. It should be made through delivery of legal tender only.

The following statements concerning payment are correct, except

• a. Payment means only delivery of money but not performance, in any other manner, of an obligation.

• b. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be.

• c. If the obligation has been substantially performed in good faith, the obligor or debtor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee or creditor.

• d. When the obligee or creditor accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with.

Is the creditor required to accept payment or performance by a third person who has no interest in the fulfillment of the obligation?

• a. Yes because it is provided by law

• b. Yes because it is for the benefit of the creditor.

• c. No, unless there is stipulation to the contrary.

• d. No, under any circumstances.

What is the right of a third person who pays for the debtor without the knowledge or against the will of the debtor?

• a. The third person may demand the whole amount paid from the debtor

• b. The third person cannot recover any amount.

• c. The third person may compel the creditor to subrogate him in his rights, such as those arising from a mortgage, guaranty or penalty

• d. The third person may recover only insofar as the payment has been beneficial to the debtor but there will be no legal subrogation

The following statements concerning payment made by a third person who does not intend to be reimbursed by the debtor are correct, except

• a. It is deemed to be a donation

• b. It requires the debtor’s consent.

• c. The payment is in any case valid as to the creditor who has accepted it.

• d. The payment will subrogate the third person with creditor’s rights.

Which of the following statements is correct? I. In obligations to give, payment made by one who does not have the free disposal of the thing due and capacity to alienate it shall not be valid. II. Payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing delivered or insofar as the payment has been beneficial to him.

• a. Neither I nor II

• b. Both I and II

• c. I only

• d. II only

The following are the persons to whom payment shall be made, except

• a. Person in whose favor the obligation has been constituted or creditor

• b. Any third person

• c. Successor of interest of creditor such as heirs or assignees of creditor

• d. Any person authorized by the creditor to receive payment such as agent or representative of creditor

As a general rule, payment to a third person is not valid. The following are the exceptional instances wherein payment made to a third person is valid, except

• a. When in good faith, the debtor pays to one in possession of the credit.

• b. When, without notice of the assignment of the credit, the debtor pays to the original creditor.

• c. When the payment to a third person redounded to the benefit of the creditor.

• d. When the debtor was judicially ordered to retain the debt.

Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the creditor. As a general rule, the debtor must prove that the payment to a third person redounded to the benefit of the creditor. The following are the exceptional cases wherein the debtor need not prove that the payment to third person redounded to the benefit of creditor for such payment to be valid, except

• a. If after the payment, the third person acquires the creditor’s rights.

• b. If the creditor ratifies the payment to the third person.

• c. If by the creditor’s conduct, the debtor has led to believe that the third person had authority to receive payment.

• d. If the third person is not authorized by the creditor.

Who shall shoulder the extra-judicial expenses required by the payment of an obligation?

• a. Debtor

• b. Creditor

• c. Government

• d. None of the above