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What is the difference between Dacion en Pago and payment by cession?

Dation in payment , also known as dacion en pago, is a type of payment in which the debtor gives something else to the creditor in exchange for payment of an existing debt in money. Payment by cession is a unique form of payment.

What is the example of dation in payment?

Dation in payment in a mortgage happens when the debtor cannot pay his installments. Then he proceeds to deliver the house to the banking institution and in this way liquidates the debt. Using this method, the delivery of the house will be enough to pay off the mortgage loan.

What do you mean by dacion en pago give an example?

Dacion en pago (dation in payment) means handing the keys of your property back to the lender (bank) by the signing of deeds in front of the Spanish Notary. As a result of this, the bank will write the mortgage liability off. Furthermore, the lender will give up chasing the debt or your assets in your home country.

What law governs Dacion en Pago?

Corollary thereto, Article 1245 of the Civil Code provides for a special mode of payment called dacion in payment (dacion en pago). In dacion en pago, property is alienated to the creditor in satisfaction of a debt in money.

What is dation in payment Brainly?

Dation in payment is a method that you can use to pay outstanding debts that you have, it consists of handing over a movable or immovable property to complete the payment.

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