An obligation is extinguished by an offer of performance, made in conformity to the rules herein prescribed, and with intent to extinguish the obligation.
Extinction of ObligationsOffer of Performance
Section § 1485
This law states that if you offer to fulfill a promise or duty in the right way and with the goal of completing it, that obligation is considered fulfilled and no longer exists.
offer of performance extinguish obligation fulfillment of duty
Section § 1486
This law says that if someone offers to complete only part of what they're supposed to do under a contract or agreement, that offer doesn't count. In other words, you can't just do part of a deal and expect it to be accepted as meeting your obligations.
An offer of partial performance is of no effect.
partial performance contract obligations offer rejection
Section § 1487
When someone owes a debt, either they or someone else with their approval must make an effort to fulfill the obligation.
An offer of performance must be made by the debtor, or by some person on his behalf and with his assent.
offer of performance debtor's approval fulfilling debt
Section § 1488
If you owe someone money or a service (a creditor), you need to offer to fulfill that obligation directly to them. If there are multiple creditors, you can make the offer to any one of them or to someone they authorize to collect. You should do this wherever the creditor or their authorized person is located.
Section Fourteen Hundred and Eighty-eight. An offer of performance must be made to the creditor, or to any one of two or more joint creditors, or to a person authorized by one or more of them to receive or collect what is due under the obligation, if such creditor or authorized person is present at the place where the offer may be made; and if not, wherever the creditor may be found.
offer of performance creditor joint creditors
Section § 1489
This law explains where a debtor can offer to fulfill a payment or obligation if there's no special agreement about it. The debtor can choose from several options: the location the creditor has chosen, wherever the creditor can be found, or at the creditor's home or business if they can't be easily found. If none of these work, the offer can be made anywhere within the state.
In the absence of an express provision to the contrary, an offer of performance may be made, at the option of the debtor:
1. At any place appointed by the creditor; or,
2. Wherever the person to whom the offer ought to be made can be found; or,
3. If such person cannot, with reasonable diligence, be found within this State, and within a reasonable distance from his residence or place of business, or if he evades the debtor, then at his residence or place of business, if the same can, with
reasonable diligence, be found within the State; or,
4. If this cannot be done, then at any place within this State.
offer of performance debtor options creditor location
Section § 1490
If you have a duty to do something by a specific time, you need to offer to do it precisely at that time and during normal, reasonable hours. You shouldn't try to do it earlier or later than the set time.
Where an obligation fixes a time for its performance, an offer of performance must be made at that time, within reasonable hours, and not before nor afterwards.
obligation performance fixed time requirement reasonable hours
Section § 1491
If a contract or agreement doesn't specify when something needs to be done, the person who owes performance can offer to complete it anytime, as long as they haven't already declined to do so after being reasonably asked.
Where an obligation does not fix the time for its performance, an offer of performance may be made at any time before the debtor, upon a reasonable demand, has refused to perform.
obligation performance offer of performance
Section § 1492
This law says that if something is late but can be fully made up for with a specific payment, and it wasn't stated beforehand that being on time was crucial, you can still offer to perform and pay the compensation at any time after the due date. However, you have to respect any rights the creditor or others have gained during the delay.
Where delay in performance is capable of exact and entire compensation, and time has not been expressly declared to be of the essence of the obligation, an offer of performance, accompanied with an offer of such compensation, may be made at any time after it is due, but without prejudice to any rights acquired by the creditor, or by any other person, in the meantime.
delay in performance exact compensation time of the essence
Section § 1493
This law says that when you make an offer to fulfill a payment or obligation, you need to do it honestly and in a way that is most helpful to the person you're owing, given the situation.
An offer of performance must be made in good faith, and in such manner as is most likely, under the circumstances, to benefit the creditor.
offer of performance good faith creditor benefit
Section § 1494
If you make an offer to fulfill an obligation, it can't have any conditions that the person you're offering it to isn't required to meet.
An offer of performance must be free from any conditions which the creditor is not bound, on his part, to perform.
offer of performance conditions creditor
Section § 1495
If you make an offer to do something, it's meaningless unless you're actually prepared and capable of doing what you offered.
An offer of performance is of no effect if the person making it is not able and willing to perform according to the offer.
offer of performance able and willing effectiveness of offer
Section § 1496
This law says that if you're offering to perform something under a contract, you don't need to actually bring or show the item involved unless the other party agrees to your offer.
The thing to be delivered, if any, need not in any case be actually produced, upon an offer of performance, unless the offer is accepted.
offer of performance thing to be delivered actual production
Section § 1497
When you fulfill an obligation by giving something, it should be easily distinguishable and not combined with other things in a way that makes it hard to separate.
A thing, when offered by way of performance, must not be mixed with other things from which it cannot be separated immediately and without difficulty.
performance obligation separate immediately offered by way of performance
Section § 1498
If someone owes another person a duty to do something, but there's a condition that must be met first or at the same time, they can insist that the condition is fulfilled before they have to do their part.
When a debtor is entitled to the performance of a condition precedent to, or concurrent with, performance on his part, he may make his offer to depend upon the due performance of such condition.
debtor condition precedent concurrent performance
Section § 1499
If you owe someone something and you give them what you owe, you can ask them to give you a written receipt as proof that you've fulfilled your obligation.
A debtor has a right to require from his creditor a written receipt for any property delivered in performance of his obligation.
debtor creditor written receipt
Section § 1500
If you owe someone money and you offer to pay it back, your obligation to pay is considered ended if you immediately put that amount into a reputable bank or savings and loan association for the creditor and then tell them about it.
An obligation for the payment of money is extinguished by a due offer of payment, if the amount is immediately deposited in the name of the creditor, with some bank or savings and loan association within this state, of good repute, and notice thereof is given to the creditor.
payment obligation extinguish debt offer of payment
Section § 1501
If someone offers to fulfill a debt or obligation, and there are issues with how they are offering to do it, the person owed must immediately speak up about these issues if they can be fixed. If they don't speak up right then, they can't complain about those issues later.
All objections to the mode of an offer of performance, which the creditor has an opportunity to state at the time to the person making the offer, and which could be then obviated by him, are waived by the creditor, if not then stated.
objections performance offer waived objections
Section § 1502
This law says that when someone owes something to another person (like paying a debt), and they offer what's owed, the ownership of what they offer can be transferred to the person they owe. However, this transfer only happens if the person who owes clearly shows they want to transfer ownership at that time.
The title to a thing duly offered in performance of an obligation passes to the creditor, if the debtor at the time signifies his intention to that effect.
transfer of ownership debtor creditor
Section § 1503
If someone offers something other than money to fulfill an obligation, they must keep it safe until the person who it's for accepts it. If they want to stop holding it, they have to let the other person know and, if possible, find another safe place to store it.
The person offering a thing, other than money, by way of performance, must, if he means to treat it as belonging to the creditor, retain it as a depositary for hire, until the creditor accepts it, or until he has given reasonable notice to the creditor that he will retain it no longer, and, if with reasonable diligence he can find a suitable depositary therefor, until he has deposited it with such person.
performance obligation thing other than money creditor acceptance
Section § 1504
If you offer to pay a debt or fulfill a requirement properly, even if you don't hand over the actual item to the creditor, interest on what you owe stops accumulating as if you had completed the obligation.
An offer of payment or other performance, duly made, though the title to the thing offered be not transferred to the creditor, stops the running of interest on the obligation, and has the same effect upon all its incidents as a performance thereof.
offer of payment interest stoppage debt fulfillment
Section § 1505
When someone offers something to pay off a debt and the creditor refuses to accept it, the creditor doesn't have to give it back unless asked. However, if the creditor keeps it without returning, they are considered to be holding it for free as a favor.
If anything is given to a creditor by way of performance, which he refuses to accept as such, he is not bound to return it without demand; but if he retains it, he is a gratuitous depositary thereof.
creditor refusal performance tender return on demand
