COMMENT:

(1) Essential Requisites for Consignation

(a) existence of a valid debt

(b) valid prior tender, unless tender is excused

(c) prior notice of consignation (before deposit)

(d) actual consignation (deposit)

(e) subsequent notice of consignation

First Requisites:

(a) In the case of an option, there is a privilege, not an obligation or a debt.

(b) Example: A was given an option to cancel a contract provided he paid P600,000. Mere
tender is sufficient to preserve the right to cancel. (See Asturias Sugar Central v. Pure Cane
Molasses, 60 Phil. 255).
(c) The same is true in the case of an option to buy given to a lessee. (See Vda. de Quirino v.
Palarca, L-28269, Aug. 15, 1969).
(d) (b) In the case of legal redemption, there is as yet no debt (for this again is a right, not a
debt or duty). (De Jesus v. Garcia, [C.A.] 47 O.G. 2406).
(e) (c) So also, in the case of conventional redemption (this again is a right, not an obligation).
(Rosales v. Reyes, 25 Phil. 495). Art. 1257 CIVIL CODE OF THE PHILIPPINES 426
(f) (d) So also, if the alleged debt has prescribed (for here, there is no more debt).
(g) (e) So also, if the debt is founded on an illegal cause or consideration, or if for any other
reason, null and void.
(h) (f) So also, if the obligation of the debtor is conditional, and the condition has not been
ful lled. (See Sotto v. Mijares, L-23563). (g) But a mortgage debt is a true and valid debt,
and payment here is a DUTY. (Capalungan v. Medrano, L-13783,

How Consignation Is Actually Made:

(a) The things due must be deposited with the proper judicial authorities (while ordinarily the
cashier or the cash officer should be the person to issue the receipt for the money consigned, a
temporary receipt issued by the clerk of court for said deposit would suffice). (See Yap v. Tingin,
L-18943, May 31, 1963).

(b) There must be PROOF that:

1) tender had previously been made (general rule);

2) or that the creditor had previously noticed the debtor that consignation will be made (in case
tender is not required).

Query:

Suppose one of the essential requisites for consignation is not present, may the debtor ask for
the cancellation of the obligation?

ANS.: Yes, provided the creditor does not object. This would have the effect of a waiver. (See
Limkako v. Teodoro, 74 Phil. 313)

Query:

How can the creditor prevent the debtor from exercising the RIGHT to withdraw the thing
consigned?
ANS.: By immediately accepting the consignation with or without reservations. If he accepts
without reserving his right to further claims such as damages, this would be a case of WAIVER