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Simple English definitions for legal terms
dation en paiement
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A quick definition of dation en paiement:
Dation en paiement: Dation en paiement means giving something instead of money to pay off a debt. It can be a contract where the person who owes money gives something to the person they owe, who accepts it as payment. This type of payment needs court approval. It can also be used to satisfy a mortgage debt by transferring the property to the mortgage-holder when the mortgage is more than the property's value.
A more thorough explanation:
Dation en paiement is a French term that means "a giving in payment". It is a legal concept that refers to the exchange of something instead of money to satisfy a debt.
- If a person owes money to another person, they may offer to give them a valuable item, such as a piece of jewelry or a painting, instead of paying with cash. This is an example of dation en paiement.
- In Louisiana, dation en paiement is a contract in which the debtor gives a thing to the creditor, who accepts it in payment of a debt.
- Dation en paiement can also be used to satisfy a mortgage debt by transferring the mortgaged property when the mortgage exceeds the property's value and the mortgage-holder is willing to accept the property in satisfaction of the debt.
These examples illustrate how dation en paiement can be used as an alternative to paying a debt with cash. It is important to note that dation en paiement requires court approval after petition and notice in Louisiana.