Dation of payment is the transfer of a form of good, service or financial asset in exchange for another form of good, service or financial asset in proportions that have been previously agreed by all parties involved. Payment can be made in the form of funds, assets, or services.
Today's monetary system allows payments to be made with currency. Currency, which has simplified the means of economic transactions, provides a convenient means through which payments can be made; It can also be easily stored.
For example, in the past, if an egg farmer with a large surplus of eggs wanted milk, he would have to find the farmer who would be willing to take eggs as payment for the milk. In this case, if a suitable dairy farmer was not found in time, not only would the farmer not get his milk, but his eggs would end up being damaged, becoming useless. The currency, on the other hand, maintains its value over time.
In other words, it is a way of extinguishing the obligations, when the debtor, with the consent of the creditor, delivers a different wing established as payment when the creditor accepts it with all the legal effects of the payment.
For payment, a pre-existing obligation is necessary, otherwise it would be an obligation without cause, and the payment could be presented as improper, since there would be an enrichment of the one that appeared as a creditor, and an impoverishment of the presumed debtor, without cause that justify it.
This legal figure is presented as an exception to the principle of accuracy regarding the fulfillment of the benefit, since it is not possible to deliver a payment different from what was agreed for more than what it has.
The dation in payment produces the effects of a regular payment: it satisfies the interests of the creditor and extinguishes the obligation in a comprehensive manner; The partial payment extinguishes the obligation corresponding to its amount. The obligation or fraction of this extinguished cannot be revived by the act of rescission, nor by the conventional declaration of the creditor and the debtor, nor by the restitution of the amount paid from the first to the second.
