The Impossibility of Performance is a central doctrine in the law of obligations, addressing circumstances in which a contractual duty can no longer be fulfilled. It determines whether an obligation is discharged, suspended, or remains enforceable despite an unexpected event. Whether caused by destroyed subject matter, personal incapacity, or legal prohibition, impossibility requires careful legal…
In the law of obligations, performance may become impossible when the thing, right, or service due ceases to exist or can no longer be lawfully delivered. This circumstance, known as Loss of Subject Matter, may extinguish duties or give rise to liability. The legal consequences depend on the nature of the loss, the debtor’s fault,…
Obligations do not continue indefinitely. In the law of obligations, extinguishment of obligations determines when a debtor is released and a creditor’s corresponding right to demand performance comes to an end. Payment remains the ordinary means of discharge, yet obligations may also cease through impossibility, remission, compensation, novation, prescription, or judicial remedies. Each mode carries…
In the law of obligations, payment extinguishes a debt only when it can be reliably established. Proof of Payment therefore serves as essential evidence that a debtor has performed the obligation owed to a creditor. Whether payment is made in cash, by bank transfer, or through a digital platform, clear records can prevent disputes over…
In the law of obligations, a single payment may raise a significant question: which debt has actually been discharged? The Application of Payments provides the legal framework for allocating a payment when several obligations exist between the same debtor and creditor. Proper allocation can determine whether interest remains due, whether a particular debt is extinguished,…
Payment by Third Parties is a significant doctrine within the law of obligations, addressing situations in which someone other than the debtor satisfies an existing debt. Such payment may discharge the obligation, but its legal consequences depend on authority, intent, and the creditor’s position. Whether made by a guarantor, insurer, family member, or employer, third-party…
Partial Payment arises when a debtor performs only part of an obligation that is due. Although it may appear straightforward, its legal consequences can affect default, interest, limitation periods, and the parties’ respective rights. In the law of obligations, whether a creditor must accept Partial Payment often depends on the contract, the nature of the…
Dation in Payment is a civil-law mechanism through which a debtor satisfies an existing obligation by transferring property or another right that the creditor agrees to accept in place of money or the original performance. Often used in debt-settlement arrangements, Dation in Payment requires more than a simple transfer of assets. Its legal effect depends…
When a debtor cannot satisfy obligations with money, the law may permit the transfer of assets to creditors as an alternative means of settlement. This mechanism, known as Payment by Cession, balances debt recovery with the debtor’s financial reality. Within the law of obligations, Payment by Cession raises important questions concerning consent, asset administration, creditor…
In the law of obligations, payment ordinarily extinguishes a debtor’s duty. Difficulties arise, however, when a creditor refuses payment, cannot be found, or when several parties claim the same amount. Consignation of Payment provides a legal mechanism for depositing what is due with a competent authority, subject to statutory requirements. When properly made, it may…