A valid consignation without prior tender of payment is allowed when what circumstance exists?

A valid consignation without prior tender of payment is allowed when what circumstance exists?

• A. Creditor is absent or unknown
• B. Debtor is solvent
• C. Notice to interested persons is required
• D. Debt is not due

Answer: (A)

Consignation without prior tender is allowed when the creditor is absent or his address is unknown, because tender becomes impossible in that situation. The debtor can deposit the amount or thing with the appropriate court and give notice to interested parties, thereby fulfilling the obligation even though the creditor cannot be located. This mechanism protects the debtor from being kept in default due to the creditor’s absence and ensures the funds or property are held for the creditor to claim if/when he becomes known or available. The other circumstances don’t justify this route because solvency doesn’t make tender unnecessary, and merely requiring notice to interested persons or noting that the debt is not yet due doesn’t address the practical impossibility of delivering to a known or unknown creditor.

Consignation without prior tender is allowed when the creditor is absent or his address is unknown, because tender becomes impossible in that situation. The debtor can deposit the amount or thing with the appropriate court and give notice to interested parties, thereby fulfilling the obligation even though the creditor cannot be located. This mechanism protects the debtor from being kept in default due to the creditor’s absence and ensures the funds or property are held for the creditor to claim if/when he becomes known or available.

The other circumstances don’t justify this route because solvency doesn’t make tender unnecessary, and merely requiring notice to interested persons or noting that the debt is not yet due doesn’t address the practical impossibility of delivering to a known or unknown creditor.