April 2013 Philippine Supreme Court Decisions on Civil Law

Here are selected April 2013 rulings of the Supreme Court of the Philippines on civil law:

Civil Code

Contract; Rescission; effect. Rescission entails a mutual restitution of benefits received. An injured party who has chosen rescission is also entitled to the payment of damages. Sandoval Shipyards, Inc. v. Philippine Merchant Marine Academy (PMMA); G.R. No. 188633. April 10, 2013

Obligation; Extinguishment of obligations; consignation; when tender of payment not necessary; judicial in character; difference between consignation and tender of payment. Under Article 1256 of the Civil Code, the debtor shall be released from responsibility by the consignation of the thing or sum due, without need of prior tender of payment, when the creditor is absent or unknown, or when he is incapacitated to receive the payment at the time it is due, or when two or more persons claim the same right to collect, or when the title to the obligation has been lost.

Consignation is necessarily judicial. Article 1258 of the Civil Code specifically provides that consignation shall be made by depositing the thing or things due at the disposal of judicial authority. The said provision clearly precludes consignation in venues other than the courts.

Elsewhere, what may be made is a valid tender of payment, but not consignation. The two, however, must be distinguished.

Tender of payment must be distinguished from consignation. Tender is the antecedent of consignation, that is, an act preparatory to the consignation, which is the principal, and from which are derived the immediate consequences which the debtor desires or seeks to obtain. Tender of payment may be extrajudicial, while consignation is necessarily judicial, and the priority of the first is the attempt to make a private settlement before proceeding to the solemnities of consignation. (8 Manresa 325).

Sps. Cacayorin v. Armed Forces and Police Mutual Benefit Association, Inc.; G.R. No. 171298. April 15, 2013

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