A owes money to B evidenced by a PN payable on A's birthday. When A was celebrating his birthday, B put the PN inside an envelope and delivered it to A. What is the effect of B's act?

Question

Quizplus · Accepted Answer

The delivery of the promissory note by B to A implies renunciation of the action which B had against A, according to Article 1271 of the New Civil Code, which states that the delivery of a private document evidencing a credit, made voluntarily by the creditor to the debtor, implies the renunciation of the action which the former had against the latter. If in order to nullify this waiver it should be claimed to be inofficious, the debtor and his heirs may uphold it by proving that the delivery of the document was made in virtue of payment of the debt.

A Owes Money to B Evidenced by a PN Payable