This case has been cited 1 times or more.
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2016-01-11 |
BERSAMIN, J. |
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| The petitioners have theorized that their transaction with the respondents was a valid dacion en pago by highlighting that it was Linda who had offered to sell her property upon her default. Their theory cannot stand scrutiny. Dacion en pago is in the nature of a sale because property is alienated in favor of the creditor in satisfaction of a debt in money.[11] For a valid dacion en pago to transpire, however, the attendance of the following elements must be established, namely: (a) the existence of a money obligation; (b) the alienation to the creditor of a property by the debtor with the consent of the former; and (c) the satisfaction of the money obligation of the debtor.[12] To have a valid dacion en pago, therefore, the alienation of the property must fully extinguish the debt. Yet, the debt of the respondents subsisted despite the transfer of the property in favor of Adelaida. | |||||