Text of the provision
Art. 1278. Compensation shall take place when two persons, in their own right, are creditors and debtors of each other.
(1195)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
Compensation takes place when two persons are, in their own right, creditors and debtors of each other — their debts offset each other to the concurrent amount.
Questions about this provision
Related provisions
- Article 1277 — Confusion in Joint Obligations.
- Article 1279 — Requisites of Legal Compensation.
Cases citing this article
- Citibank, N.A. (Formerly First National City Bank) vs. Modesta R. Sabeniano, G.R. No. 156132, October 12, 2006 — read the decision on LawPhil →
- Bangko Sentral ng Pilipinas vs. Commission on Audit, et al, G.R. No. 168964, January 23, 2006 — read the decision on LawPhil →
- Jennefer Figuera vs. Maria Remedios Ang, G.R. No. 204264, June 29, 2016 — read the decision on LawPhil →
- Bank of the Philippine Islands vs. Court of Appeals, et al, G.R. No. 136202, January 25, 2007 — read the decision on LawPhil →
- Sps. Ramon M. Nisce and A. Natividad Paras-Nisce vs. Equitable PCI Bank, Inc, G.R. No. 167434, February 19, 2007 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.