- Statute
- Civil Code
- Article
- Art. 1626
- Topic
- Assignment of Credits and Other Incorporeal Rights
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE VI SALES
- Chapter
- CHAPTER 8 Assignment of Credits and Other Incorporeal Rights
- Formerly
- Art. 1527 of the old Civil Code
- Year
- 1949
- Cited by
- A Supreme Court decision
The provision
The debtor who, before having knowledge of the assignment, pays his creditor shall be released from the obligation. (1527)
Intellegal Wiki · In plain terms
If a creditor transfers a debt to someone else but the debtor pays the original creditor before learning of the transfer, that payment fully discharges the debtor. He cannot be forced to pay again to the new creditor, since he had no notice of the assignment when he paid.
An editorially maintained plain-language explanation of this provision — not legal advice.
Cases applying this article
- Spouses Ferdinand Aguilar v. Citytrust Finance Corporation G.R. No. 159592
Related provisions in this Chapter
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