Text of the provision
Art. 1255. The debtor may cede or assign his property to his creditors in payment of his debts. This cession, unless there is stipulation to the contrary, shall only release the debtor from responsibility for the net proceeds of the thing assigned. The agreements which, on the effect of the cession, are made between the debtor and his creditors shall be governed by special laws.
(1175a)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
The debtor may assign (cede) his property to his creditors in payment. Unless stipulated otherwise, this releases him only up to the net proceeds of the property assigned; the arrangements are governed by special (insolvency) laws.
Questions about this provision
Related provisions
- Article 1254 — Application by Operation of Law.
- Article 1256 — Tender of Payment and Consignation.
Cases citing this article
- Development Bank of the Philippines vs. Court of Appeals, et al, G.R. No. 118342, January 5, 1998 — read the decision on LawPhil →
- Yulim International Company Ltd., et al vs. International Exchange Bank (now Union Bank of the Philippines), G.R. No. 203133, February 18, 2015 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.