Article 1256
ELI5— what this means for you
Consignation: if the creditor refuses to accept payment, the debtor may deposit the payment with the court (consignation). This extinguishes the obligation and stops the running of interest.
Official text — RA 386
If the creditor to whom tender of payment has been made refuses without just cause to accept it, the debtor shall be released from responsibility by the consignation of the thing or sum due.
Consignation alone shall produce the same effect in the following cases:
(1) When the creditor is absent or unknown, or does not appear at the place of payment;
(2) When he is incapacitated to receive the payment at the time it is due;
(3) When, without just cause, he refuses to give a receipt;
(4) When two or more persons claim the same right to collect;
(5) When the title of the obligation has been lost. (1176a)
Source: lawphil.net (RA 386 as amended)
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