This case has been cited 1 times or more.
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2014-02-19 |
REYES, J. |
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| Dacion en pago or dation in payment is the delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of the performance of the obligation.[40] It is a mode of extinguishing an existing obligation[41] and partakes the nature of sale as the creditor is really buying the thing or property of the debtor, the payment for which is to be charged against the debtor's debt.[42] Dation in payment extinguishes the obligation to the extent of the value of the thing delivered, either as agreed upon by the parties or as may be proved, unless the parties by agreement express or implied, or by their silence consider the thing as equivalent to the obligation, in which case the obligation is totally extinguished.[43] | |||||