Page 324 - Important Provisions of The New Civil Code

Article 1279. In order that compensation may

be proper, it is necessary:

(1) That each one of the obligors be bound

principally, and that he be at the same time

a principal creditor of the other;

(2) That both debts consist in a sum of

money, or if the things due are consumable,

they be of the same kind, and also of the

same quality if the latter has been stated;

(3) That the two debts be due;

(4) That they be liquidated and demandable;

(5) That over neither of them there be any

retention or controversy, commenced by

third persons and communicated in due

time to the debtor. (1196)