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.
Can compensation occur even though the creditors and debtors are not aware of the said compensation?
The rule on legal54 compensation is stated in Article 1290 of the Civil Code which provides that “[w]hen all the requisites mentioned in Article 1279 are present, compensation takes effect by operation of law, and extinguishes both debts to the concurrent amount, even though the creditors and debtors are not aware of …
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.
How is compensation takes place in extinguishing an obligation?
What is compensation? It is a mode of extinguishing to the concurrent amount, the obligations of those persons who in their own right are reciprocally debtors and creditors of each other (Art.
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 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 …
What can creditors do to collect debt?
And a creditor can’t just take money from your bank account or grab your tax refund—unless you owe back taxes or you’ve defaulted on a student loan. To collect a debt, the general rule is that most commercial creditors must first sue you and win a money judgment (a court award) against you.
When may the debtor be compelled by the creditor to pay even before the due date of the obligation?
According to American jurisprudence. 10. Anticipating Due Date. — As a general rule, a creditor can no more be compelled to accept payments on a contract before, by the terms thereof, they are due, than can the debtor be compelled to make such payments before they are due.
Can you sue someone for not paying debt Philippines?
According to Atty. Romel Regalado Bagares, “non-payment of debts are only civil in nature and cannot be a basis of a criminal case.
What does the law of compensation mean?
The Law of Compensation is another restatement of the Law of Sowing and Reaping. It says that you will always be compensated for your efforts and for your contribution, whatever it is, however much or however little.
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.
How is compensation defined in law?
Compensation is payment or remuneration for work or services performed or for harm suffered (see also damages).