Sunday, February 7, 2016

Article 1284


                When one or both debts are rescissible or voidable, they may be compensated against each other before they are judicially rescinded or avoided.
Kapag ang isa o parehong mga utang ay maaaring ikansela o ipawalang bisa, maaari nilang bayaran ang bawat isa bago pa man ito ipawalang bisa o kanselahin ng hukuman. (n)
                Before rescissible or voidable debts are judicially rescinded or annulled, they are valid debts. The parties may opt not to rescind or annul them. Consequently, until they shall have been judicially declared void, they can be compensated against each other.
                If the prescriptive period for the rescission or annulment of the debts had already lapsed, there is automatic compensation and the same will not disturbed anymore.

                In other cases, if the debt is rescinded or annulled, the compensation is also automatically cancelled and there shall be restitution of what each party had received before the rescission or annulment.

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