Consignation is the act of depositing the thing
Definitions:
Accessions are additions to or improvements
upon a thing.
Accessories are those joined to or included with
the principal for the latter’s better use, perfection, or
enjoyment.
Accion pauliana is the action to impugn or
rescind acts or contracts done by the debtor to
defraud the creditors.
Accion subrogatoria (subrogatory action) is
the exerscise all rights and actions except those
inherent in the person (like parental authority, right
to revoke donations on ground of ingratitude, hold
office, carry out an agency).
An alternative obligation is one where out
of the two or more prestations which may be given,
only one is due.
Application of payment is the designation of
the debt to show which debt, out of two or more
debts owing the same creditor, is being paid
Bad Faith has been defined as a state of mind
affirmatively operating with furtive design and
implies a conscious and intentional design to do a
wrongful act for a dishonest purpose or moral
obliquity.
BADGES OF FRAUD are some circumstances
indicating that certain alienation has been made in
fraud of creditors.
Cause is the essential and impelling reason why a
party assumes an obligation. Strictly speaking,
there is no cause of a contract, but there is a cause
for an obligation.
Caveat Emptor simply means that a buyer
must be on his guard.
Cession is the process by which a debtor
transfers all the properties not subject to execution
in favor of his creditors so that the latter may sell
them, and thus apply the proceeds to their credits.
Compensation is that which takes placle when
two persons, in their own right, are creditors and
debtors of each other.
Condition is an uncertain event which wields an
influence on legal relationship.
Condonation or Remission is the gratuitous
abandonment by the creditor of his right.
Confusion or merger is that which takes place
when the characters of creditor and debtor are
merged in the same person.
due with the court or judicial authorities whenever
the creditor cannot accept or refuses to accept
payment. It generally requires a prior tender of
payment.
A contract is a meeting of minds between two
persons whereby one binds himself, with respect to
the other, to give something or to render some
service.
Contract of Adhesion, where the parties do
not bargain on equal footing, the weaker party’s
(the debtor’s) participation being reduced to the
alternative “take it or leave it. Its provisions are
drafted by only one party, usually a corporation,
and the only participation of the other party is to
sign his name, his signature or his “adhesion” to the
contract.
Dation is the transfer or conveyance of
ownership of a thing as an accepted equivalent of
performance.
Default or Legal Delay is the delay after the
demand.
Delegacion is where the initiative comes from
the debtor, concerning the substituting the person
of the debtor in novation.
Dolo Causante is the use of insidious words
and machinations by one of the contracting parties
to induce the other party to enter into a contract,
which, without them, he would not have agreed to.
Error of Fact proceeds either from ignorance
of that which really exists or from a mistaken belief
in the existence of that which has none. (Black’s
Dictionary)
Error of Law; when a person is truly informed
of the existence of facts, but draws from them
erroneous conclusions of law. (Black’s Dictionary)
expromision is where the initiative comes from a
third person, concerning the substituting the person
of the debtor in novation.
Facultative Obligation is one where only
one prestation has been agreed upon but the
obligor may render another in substitution.
Fortuitous Event is that which could not be
foreseen, or which even if foreseen, was inevitable.
Future Inheritance is any property or right
not in existence or capable of determination, at the
time of the contract, that a person may in the future
acquire by succession.
Fraud; there is fraud when, through insidious
words or machinations of one of the contracting
parties, the other is induced to enter into a contract
which, without them, he would not have agreed to.
(Article 1338 of Civil Code)
Garnishment takes place when the debtor of a
debtor is ordered not to pay the latter so that
preference would be given to the latter’s creditor.
Indebtedness has been defined as an
unconditional and legally enforceable obligation for
the payment of money.
Indivisible obligations are those obligations
to give definite things and those which are not
susceptible of partial performance shall be deemed
to be indivisible.
Inflation is a sharp sudden increase of money
or credit or both without a corresponding increase
in business transaction.
Interpleader is technical name of the action in
which a certain person in possession of certain
property wants claimants to litigate among
themselves for the same. It is when there is
conflicting claims upon the same subject matter.
Intimidation; there is intimidation when one of
the contracting parties is compelled by a
reasonable and well-grounded fear of an imminent
and grave evil upon his person or property, or upon
the person or property of his spouse, descendants
or ascendants, to give his consent. It refers to
moral coercion.
In a joint obligation, each obligor answers
only for a part of the whole liability and to each
obligee belongs only a part of the correlative rights.
Legal Tender is that which a debtor may
compel a creditor to accept in payment of the debt
(whether public or private).
Lesion is the inadequacy of cause, like insufficient
price for a thing sold. It is the great disparity
between the price and the real value of the
property.
Negotiorum Gestio when a person voluntarily
takes charge of another’s abandoned business or
property without the owner’s authority.
Negligence is the omission of that diligence
which is required by the circumstances of person,
place, and time. (Article 1173 of Civil Code)
Novation is the modification of an obligation by
changing its object or principal conditions, or by
substituting the person of the debtor, or by
subrogating a third person in the rights of creditor.
Ordinary Delay is merely non-performance at
the stipulated time;
Payment is one of the ways by which an
obligation is extinguished and consists in the
delivery of the thing or the rendition of the service
which is the object of the obligation.
A penal clause is an accessory undertaking to
assume greater liability in case of breach. It is
attached to obligations in order to insure their
performance. It is a coercive means to obtain from
the debtor compliance from the debtor.
Period is a certain length of time which
determines the effectivity or the extinguishment of
obligations.
A personal right is power demandable by one
person of another — to give, to do, or not to do.
Proximate cause is that adequate and efficient
cause, which in the natural order of events,
necessarily produces the damages or injury
complained of.
A quasi-contract is that juridical relation
resulting from a lawful, voluntary, and unilateral act,
and which has for its purpose the payment of
indemnity to the end that no one shall be unjustly
enriched or benefited at the expense of another.
A quasi-delict is a fault or act of negligence
which causes damages to another, there being no
preexisting contractual relations between the
parties.
A real right is a power over a specific thing and
is binding on the whole world. It is the right that is
enforceable against the whole world.
Remission or waiver is that act of liberality
whereby a creditor condones the obligation of the
debtor; that where the creditor tells the debtor to
“forget about the whole thing.”
In a solidary obligation, the relationship
between the active and the passive subjects is so
close that each of the former or of the latter may
demand the fulfillment of or must comply with the
whole obligation; “One for all, all for one.”
Solutio Indebiti is when something is received
when there is no right to demand it, and it was
unduly delivered thru mistake.
Subrogation means the act of putting
somebody into the shoes of the creditor, hence,
enabling the former to exercise all the rights and
actions that could have been exercised by the
latter. The credit and all the appurtenant rights,
either against the debtor, or against third persons,
are transferred/
Tender of Payment is the act of offering the
creditor what is due him together with a demand
that the creditor accept the same
Term or Period is that which necessarily must
come whether the parties know when it will happen
or not.
The test of incompatibility is whether they
can stand together, each one having an
independent existence, if they cannot and are
irreconcilable, the subsequent obligation would also
extinguish the first.
Usury is the exaction of excessive interest. It is
contracting for or receiving something in excess of
the amount allowed by law. It is the exaction of
excessive interest.
Violence; there is violence when in order to
wrest consent, serious or irresistible force is
employed. It refers to physical coercion.

Rescission’

It is a relief to protect one of the parties or a third

person from all injury and damages which the contract
may cause, to protect some preferential right.

Mutual withdrawal, when two persons agreed to cancel

their contract