18:51
medicine is a scam
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
consignation
Read a random definition: fiduciary relationship
A quick definition of consignation:
Consignation: When someone owes money to another person, they need to pay it back. But sometimes, the person who is owed the money doesn't want to accept the payment. In this case, the person who owes the money can give it to someone else who is authorized to take it. This is called consignation. It's different from just offering to pay, because if the consignation is done correctly, the person who owes the money is no longer responsible for it.
A more thorough explanation:
Definition: Consignation is when a debtor gives money to a third party because the creditor refuses to accept the payment. This is different from a tender because a valid consignation releases the debtor from their debt.
Examples:
- If a person owes money to a landlord but the landlord refuses to accept the payment, the tenant can make a consignation by giving the money to a court or other authorized third party.
- A person owes money to a credit card company but the company refuses to accept the payment. The person can make a consignation by giving the money to a bank or other authorized third party.
These examples illustrate how consignation works when a creditor refuses to accept payment. The debtor can still fulfill their obligation by giving the money to an authorized third party, which releases them from their debt.