What is Article 1278 obligations and contracts?
Asked by: Mr. Tristian Turner DDS | Last update: April 19, 2026Score: 4.4/5 (17 votes)
Article 1278 of Obligations and Contracts defines Compensation, a mode of extinguishing debts where two persons, acting in their own right, are simultaneously creditors and debtors to each other, allowing their mutual obligations to cancel out to the concurrent amount, preventing unnecessary payments and litigation. It's often called "set-off" and works automatically by operation of law when requisites (like debts being of the same nature, due, and liquid) are met, simplifying payments between parties.
What is article 1278?
"ART. 1278. Compensation shall take place when two persons, in their own right, are creditors and debtors of each other." .
What is the Article 1428 obligations and contracts?
Article 1428. When, after an action to enforce a civil obligation has failed the defendant voluntarily performs the obligation, he cannot demand the return of what he has delivered or the payment of the value of the service he has rendered.
What is Article 1248 obligations and contracts?
Article 1248. Unless there is an express stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments.
What is Article 1287 obligations and contracts?
Article 1287 states that compensation shall not take place when one of the debts arises from a deposit. A depositary holds an obligation rooted in trust, and allowing compensation would potentially undermine the security and reliability of deposits.
Compensation. Article 1278-1290. Extinguishment of Obligations. Obligations and Contracts.
What are the 7 rules of contract law?
For a contract to be valid and recognized by the common law, it must include certain elements-- offer, acceptance, consideration, intention to create legal relations, authority and capacity, and certainty. Without these elements, a contract is not legally binding and may not be enforced by the courts.
What is Article 1238 obligations and contracts?
Article 1238. Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires the debtor's consent. But the payment is in any case valid as to the creditor who has accepted it. Artikulo 1238.
What is Article 1177 obligation and contracts?
The document outlines various articles regarding creditors' rights, obligations, and conditions under which these obligations may be fulfilled or annulled. It specifies that creditors can pursue debtor's property and that obligations can be pure or conditional based on certain events.
What is Article 1338 obligations and contracts?
Under Article 1338 of the Civil Code, there is fraud when, through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to.
What is Article 1234 obligations and contracts?
Article 1234: If the obligation has been substantially performed in good faith, the obligor. suffered by the oblige. recover from the shortage. those arising from a mortgage, guaranty, or penalty.
What is Article 1174 obligations and contracts?
FM is recognized under article 1174 of the Civil Code: "Except in cases specified by the law or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which, though foreseen, were ...
What is Article 1344 obligations and contracts?
Halili, 93 Phil. 526, 537 (1953). Article 1344 of the Civil Code provides: "In order that fraud may make a contract voidable, it should be serious and should not have been employed by both contracting parties. Incidental fraud only obliges the person employing it to pay damages."
Are obligations extinguished by compensation?
Compensation, as a mode of extinguishing obligations, occurs when two persons, in their capacity as debtors and creditors of each other, offset their respective debts to the extent of their concurrence. Below is a detailed breakdown of compensation, specifically its requisites, types, and related provisions.
What is the Civil Code 1468?
Civil Code section 1468 sets forth the requirements for a covenant to run with the land, i.e., be binding on subsequent purchasers. The instrument creating the covenant must meet all the following requirements: The covenant must be contained in a written instrument.
What is Article 1207 obligations and contracts?
ART. 1207 The concurrence of two or more creditors or of two or more debtors in one and the same obligation does not imply that each one of the former has a right to demand, or that each one of the latter is bound to render, entire compliance with the prestation.
What is Article 1187 obligation and contracts?
Article 1187.
If the obligation is unilateral, the debtor shall appropriate the fruits and interests received, unless from the nature and circumstances of the obligation it should be inferred that the intention of the person constituting the same was different.
What is Article 1216 obligation and contract?
Art. 1216. The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. The demand made against one of them shall not be an obstacle to those which may subsequently be directed against the others, so long as the debt has not been fully collected.
What is Article 1171 obligation and contracts?
Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. Article 1171. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void.
What are the two types of obligations in contracts?
Different Types of Contractual Obligations
Delivery – When and how goods or services will be delivered. Payment/Consideration– How much and when payment for the goods and services is due.
What does Article 1176 obligation and contracts mean?
Article 1176 provides that: "The receipt of the principal by the creditor, without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid.
What does 10 point compensable mean?
Ten points are added to the passing examination score or rating of: A veteran who served at any time and who has a compensable service-connected disability rating of at least 10% but less than 30%.