This case has been cited 2 times or more.
2013-08-14 |
VILLARAMA, JR., J. |
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Compensation is a mode of extinguishing to the concurrent amount, the debts of persons who in their own right are creditors and debtors of each other. The object of compensation is the prevention of unnecessary suits and payments through the mutual extinction by operation of law of concurring debts.[18] Article 1279 of the Civil Code provides for the requisites for compensation to take effect:ART. 1279. In order that compensation may be proper, it is necessary: | |||||
2006-06-27 |
AUSTRIA-MARTINEZ, J. |
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Ignoring this admission would only result in added burden to petitioner as well as the courts as petitioner will be forced to file a separate case for collection of sum of money just so he could enforce his right to collect from respondent. This is precisely what compensation seeks to avoid as its aim is to prevent unnecessary suits and payments through the mutual extinction of concurring debts by operation of law.[31] |