Enumerate the Requisites for Legal Compensation
Note: If all the conditions referred to in Article 1279 of the Civil Code are met, the indemnity becomes effective ipso jure, even without the consent or knowledge of creditors and debtors. If one or both debts are recoverable or voidable, they may be indemnified against each other before being legally cancelled or cancelled. (Art. 1284) Article 1288 Compensation is also not granted if one of the debts consists of civil liability arising from a criminal offence. Banco Rote intercepted funds routed through it in order to transfer them to another bank and eventually deposit them into the account of Jose Pyudal, who owes a sum of money to Banco Rote. The Court of Appeal ordered Banco Rote to reimburse the intercepted amount to Jose Pyudal, who in turn was held liable for Banco Rote by the court. X claims legal compensation. The adoption of a subsequent law does not preclude the legal compensation that took place before its entry into force, and it is also carried out against the will of the interested parties. Effect: The debtor may arrange compensation to defend against all debts before becoming aware of the assignment, not before or after the assignment. If A claims compensation, B must compensate A for the amount of EUR 5,000 for transport costs. Without prejudice to Article 301(2), no compensation may be claimed against a creditor who is entitled to free maintenance. Article 1281 Compensation may be paid in whole or in part.
If both debts have the same amount, there is full compensation. For payment processing purposes, Cezar Montanov is the debtor. He must tell Raffy Tofu which of the three debts should be compensated. If he fails to inform Raffy Tofu, he should apply the compensation to Cezar Montanov`s second obligation, namely the 12% interest-bearing bond, as this is the most onerous obligation. If the creditor has notified the creditor of the assignment but the debtor has not consented to it, the debtor may order compensation for debts arising prior to the assignment but not for subsequent debts. For compensation to be reasonable, it is necessary: A`s debt is valid, but B`s debt is questionable. Before the cancellation of B`s debt, the two debts can be set off against each other if all the conditions for legal compensation are met. Answer: Carmi can recover Arlyn`s entire P500,000.00. Arlyn cannot raise P200,000.00`s indemnification objection with respect to its consent to the assignment. However, Arlyn had reserved the right to compensation to give Arlyn only 250,000.00 pesos. Article 1289 If a person has several recoverable claims against him, the compensation order is governed by the rules on the use of payments.
Caren can only collect P700,000.00 if it sets up partial compensation for debts previously due. There was already compensation for the P300, 000.00. Upang maging wasto ang compensation, kinakailangan na: consent of parties not required in legal compensation. Article 1285 A debtor who has consented to the assignment of a creditor`s rights in favour of a third party may not claim compensation from the assignor to which he is entitled, unless the assignor has been informed by the debtor at the time of his consent that he has reserved the right to compensation. Voluntary or contractual compensation includes any compensation made by mutual agreement between the parties, even if not all the conditions for judicial compensation are met. This type of compensation has no special conditions. It is sufficient that the contract of the parties declaring compensation is valid. (Art. 1306.) Thus, the absence of a mutual creditor-debtor relationship cannot cancel the contractual indemnity. Rules on the application of payments in the compensation order. d.
Neither party shall have legal representation from the third party. Article 1290 If all the conditions referred to in article 1279 are fulfilled, compensation shall take effect ipso jure and extinguishes the two debts of the same amount, although creditors and debtors are not aware of the compensation. The only requirements are as follows: (1) each party has the right to dispose of the credit it wishes to settle, and (2) it agrees to the mutual cancellation of its credits. (CKH Industrial & Development Corp. vs. Court of Appeals, 272 SCRA 333 [1997], citing IV Tolentino, Civil Code of the Phils., 1985 Ed., p. 368; United Planters Sugar Milling Co., Inc. v.
Court of Appeal, 527 SCRA 336 [2007].) The full legal capacity of the parties is not required. — Since it is done by simple law and without the intervention of the parties, it is not necessary for the parties to give or receive all the rights, as the case may be. On the other hand, for a valid payment to be made, the parties must be free to dispose of the item due and be able to dispose of it and, if necessary, accept payments. Arah owes Bena 500,000.00 pesos, due on May 5. Bena owes 150,000.00 pesos to Arah, also due on May 5. The 5. In March (when there was no legal compensation, as if it was not yet due and claimable), Bena Crisel transferred his balance of 500,000,000 pesos, with the knowledge but without Arah`s consent. How much can Crisel collect from Arah on May 5? Answer: Nelson can collect P350,000.00 because Adrian cannot make the plea for partial compensation in respect of debts of 300,000.00 and P150,000.00, debts that were due and could therefore be settled before he became aware of the order. But Adrian cannot afford the last debt of 100,000.00 pesos for partial compensation, because it was only due after learning the order. Banco Rote`s petition is a “clever trick to use this court (Supreme Court) to confirm or legalize an inappropriate act. Banco Rote could easily have resolved this controversy quickly in ten minutes by exchanging checks with Jose Pyudal for the same amount. Instead, this simply unfounded case must have clogged our case and taken up the precious time of this court.
Compensation is similar to payment. If a debtor has different claims for which compensation is entitled, he must inform the creditor of those claims to be compensated. If he fails to do so, the indemnity is charged against the most onerous obligation. Article 1270 lists the conditions or conditions of judicial compensation as follows: Notwithstanding the provisions of the preceding article, the surety may fix compensation for what the creditor owes to the principal debtor. (1197) Answer: P500.000.00, the compensation was not paid before the assignment, so there would be no compensation here. Arlyn is indebted to Bryan P500, 000.00. Bryan, in turn, owes Arlyn P200, 00.00. Since both debts are already due and all other legal compensation conditions are met, both debts are automatically extinguished up to a maximum of 200.00 pesos. Later, with Arlyn`s approval, Brian transferred his $500.00 pesos credit to Carmi. How much can Carmi successfully raise from Arlyn? Ambot owes 10,000 Malays. Ambot deposited a ring worth 10,000.00 in Malay. Malay could not return the ring to Ambot.
If Malay claims damages, there is a breach of trust. If A requests compensation, he must pay the cost of the replacement. If the assignment takes place without the debtor`s knowledge, the debtor may pay all credit before the assignment and also later until the debtor becomes aware of the assignment.
