Legal Definitions - dation en paiement

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.