Text of the provision
Art. 1290. When 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 the compensation.
(1202a)
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
When all the requisites of Article 1279 are present, compensation takes effect automatically, by operation of law, and extinguishes both debts to the concurrent amount — even if the parties are unaware of it.
Related provisions
- Article 1289 — Order of Compensation.
- Article 1291 — Modification of Obligations (Novation).
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.