Can legal compensation take place as to debts which are not yet due?

Can compensation take place even when the debt is not yet due?

Legal compensation cannot take place as the requirement that the debts must be liquidated and demandable is not present. One of the debts is not yet liquidated for there is a running interest still to be paid thereon.

When May compensation take place when only on the debts is due?

No compensation may take place, according to Article 1279, compensation cannot take place when the debts are not due on the same date. However, if C are not yet able to pay D on the due date of D’s obligation which is on November 20, a compensation will take place on that date.

What are the instances when legal compensation is not allowed by law?

Instances when legal compensation is not allowed by law.

(2.) Where one of the debts arises from a commodatum. (3.) Where one of the debts arises from a claim for support due by gratuitous title.

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How is compensation take place?

Compensation takes place only between two debts, having equally for their object a sum of money, or a certain quantity of consumable things of one and the same kind, and which are equally liquidated and demandable. Compensation takes place, whatever be the cause of either of the debts, except in case, 1st.

What are the 3 kinds of delay in law?

There are three kinds of delay namely:

Always keep in mind that the debtor can only have an obligation to give, to do, and not to do, so he can only be delayed between the two, to give and to do, because there is no delay in not to do. One cannot be in delay for not doing at all.

What is Article 1156 all about?

Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (

What debts are not susceptible of compensation?

What are the debts not subject to compensation?

  • Debts arising from contracts of deposit.
  • Debts arising from contracts of commodatum.
  • Claims for support due by gratuitous title.
  • Obligations arising from criminal offenses.
  • Certain obligations in favor of government (e.g. taxes, fees, duties, and others of a similar nature)

What are the limitations on the right of choice of the debtor in alternative obligations?

LIMITATION ON THE DEBTOR’S CHOICE (1) The debtor cannot choose those prestations which are (a) impossible , (b) unlawful ,or (c) which could not have been the object of the obligation. (2) Only one prestation is practicable (3) The debtor cannot choose part of one prestation and part of another…show more content…

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What is compensation state the requisites before compensation could take place?

Under Article 1279, in order for legal compensation to take place, the following requisites must concur: (a) that each one of the obligors be bound principally, and that he be at the same time a principal creditor of the other; (b) that both debts consist in a sum of money, or if the things due are consumable, they be …

Can there be legal compensation?

Legal compensation takes place by operation of law, without need for the parties to do any other act. In fact, legal compensation operates even against the will of the parties and without their consent.

What do you mean by compensation?

Typically, compensation refers to monetary payment given to an individual in exchange for their services. In the workplace, compensation is what is earned by employees. It includes salary or wages in addition to commission and any incentives or perks that come with the given employee’s position.

Can a creditor refuse payment by a third person?

The creditor is not bound to accept payment or performance by a third person who has no interest in the fulfillment of the obligation, unless there is a stipulation to the contrary.