Art 1257

Consignation will be proper if

1. Debt due
ex:
X secured a Real Estate Mortgage to Y; Y foreclosed the property and sell it to
public auction; X has 1 year to redeem as provided by law; X cannot exercise
consignations because Mortgage is not a debt.

2. Valid prior tender unless tender is excuse ( Was made by legal cause) (Art 1256)
3. Previous notice was given to person interested (creditor)
4. Amount this due was deposited
5. Subsequent notice of consignation
(if consignation is proper, all expenses shall be borne by the creditor (1259))

Art 1260
The debtor can get back consignation and the obligation will continue

Art 1261
he cannot get back the consignation if the court finds it proper unless there is a
consent by the creditor.
Withdrawal by the debtor after consignation has been already made.
Effects:
1. the obligation remains
2. the creditor loses any preference (priority) over the thing
3. the co-debtors, guarantors and securities are released (unless they
consented)

Consignation has retroactive effect.

Consignation cases:
Pabuagais vs Sahijawani
423 S 596

Sigovia dept corp vs Realty Corp

354 S 159

Loss of the thing due

Loss of the thing due will include impossibility of performance.

Art 1264
 The court shall determined, if partial loss of the object of the obligation is
important as to extinguish the obligation.

Art 1265
Presumption that loss was due to debtor's fault, except when natural calamity.
(1165) comply if the thing lost (rule if generic, or specific)

Art 1266
Obligation to do shall be released when the prestation become legally or
physically impossible without the fault of the debtor
-91 legal impossibility
-92 physical impossibility

Art 1267
If the service becomes difficult to contemplate, the obligor may be released, in
whole or in part.

Doctrine of unforeseen events

(rebus sic stantibus)
 It refers to obligation "to do" (personal obligation)
 Parties are presumed to have the risk
 It does not apply alsatory contracts (insurance contract)
 Excluded highly speculative business (stock exchange)
 Monatory obligations are excluded (governed by 1357)

Requisites:
 event or change in the circumstances could have been foreseen of the
time of the execution contract
 it makes the performance of the contract extremely difficult but not
impossible
 the event must not be due to the act of any of the parties
 the contract is for a future prestation. If the contract is of immediate
fulfillment, the gross inequality of the reciprocal prestations may be
involve desion or want of cause.

Art 1268
3rd party claim

Ex:
X hit Y; Y claim damages for X and X run after the insurance. The insurance
is not the 3rd party
Art 1270 - Condonation and Remission of debt
Remission/ Condonation- gratuitous abandonment by the creditor of his right.
It does not apply in inefficous donation,
Remission is equivalent to donation. Rules on donation shall apply.

Kinds of remission
-93 express or implied
-94 full or partial

Valid
-95 debt must be existing
-96 renunciation of debt must be gratuitous

Art 1271
Implied renunciation of action (it must be voluntary), it speaks of private
document (not notarized).

Art 1272
When the private document of the debt is in the debtor, it is presumed the
creditor had voluntary delivered the same thing.

Art 1273
Renunciation of principal extinguish accessory, but the waiver of the
accessory shall leave the principal in force

Art 1274
It is presumed that the accessory obligation of pledge has been remitted when
the thing pledged, after its delivery to the creditor, is found in the possession of the
debtor, or of a third person who owns the thing.

Art 1275 Confusion or a merger of rights

 there no confusion or merger of rights or merger if he is just an agent.
there must be debtor and creditor.
 The same obligation involve
 Clear and definite