Page 35 - Obligations & Contracts Module 1-2

*Requisites for Voluntary Cession/Assignment:

a) More than 1 debt

b) More than 1 creditor

c) Complete or partial insolvency of debtor

d) Abandonment of all debtor’s property not exempt from execution

e) Acceptance or consent on the part of the creditors

EFFECTS:

a) Creditors do not become the owner; they are merely assignees with authority to sell

b) Debtor is released up to the amount of the net proceeds of the sale, unless there is a

stipulation to the contrary

c) Creditors will collect credits in the order of preference agreed upon, or in default of

agreement, in the order ordinarily established by law

d. Consignation

*Tender -the act of offering the creditor what is due him together with a demand that the

creditor accept the same (When creditor refuses w/o just cause to accept payment,

he becomes in mora accepiendi and debtor is released from responsibility if he

consigns the thing or the sum due)

*Consignation – the act of depositing the thing due with the court or judicial authorities

whenever the creditor cannot accept or refuses to accept payment; generally

requires prior tender of payments