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.
Related provisions
- Article 1277 — Confusion in Joint Obligations.
- Article 1279 — Requisites of Legal Compensation.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.
Note. The text of the provision above is reproduced in full from the official enactment (Republic Act No. 386), verified against the LawPhil and ChanRobles renderings. The annotation and commentary around it are the work of Vivas & Nobles Law Office and are general legal information, not legal advice. How a provision applies to a particular situation depends on facts that only a lawyer reviewing your case can assess.