What is obligation compensation?
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 requisites of compensation?
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 are the instances when legal compensation is not allowed by law?
Instances when legal compensation is not allowed by law.
(1.) Where one of the debts arises from a depositum. (2.) Where one of the debts arises from a commodatum.
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 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 similar to payment?
(4) Compensation is, as a rule, partial, while payment is, as a rule, complete and indivisible. the qualities of creditor and debtor. (2) As to number of obligations, in compensation there must be at least two; in confusion there is only one.
What is legal compensation Philippines?
Compensation is defined as a mode of extinguishing obligations whereby two persons in their capacity as principals are mutual debtors and creditors of each other with respect to equally liquidated and demandable obligations to which no retention or controversy has been timely commenced and communicated by third parties …
What is novation under Art 1291 Civil Code?
As stated in Article 1291, novation may also be brought about by a change in the person of the debtor. … Novation which consists in substituting a new debtor in the place of the original one, may be made even without the knowledge or against the will of he latter, but not without the consent of the creditor.
What is condonation or remission?
Condonation or remission is an act of liberality where the creditor gives up his right against the debtor, either in whole or in part, resulting in the extinguishment of the latter’s obligation.
What is Article 1156 all about?
Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (
What is a civil obligation?
A civil obligation is a legal tie, which gives the party, with whom it is contracted, the right of enforcing its performance by law.
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.