Civil Code Art. 1290: Extinguishment

Statute: Civil Code
Article: Art. 1290
Topic: Extinguishment of Obligations
Status: In force
Book: BOOK IV Obligations and Contracts
Title: TITLE I Obligations
Chapter: CHAPTER 4 Extinguishment of Obligations
Formerly: Art. 1202a of the old Civil Code
Year: 1949
Cited by: Multiple Supreme Court decisions

The provision

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)

Intellegal Wiki · In plain terms

Once the legal requirements for set-off are met, the two opposing debts automatically cancel each other out up to the smaller amount, by force of law. This offset happens even if the creditors and debtors don't know about it — no agreement or court action is needed for it to take effect.

An editorially maintained plain-language explanation of this provision — not legal advice.

Cases applying this article

Development Bank of the Philippines v. Pedro Salazar G.R. No. 228703
Gatchalian Realty v. Evelyn M. Angeles G.R. No. 202358

Related provisions in this Chapter

Civil Code, Art. 1291 Extinguishment of Obligations
Civil Code, Art. 1292 Extinguishment of Obligations
Civil Code, Art. 1293 Extinguishment of Obligations
Civil Code, Art. 1295 Extinguishment of Obligations
Civil Code, Art. 1284 Extinguishment of Obligations

Civil Code, Art. 1290 is found in CHAPTER 4 Extinguishment of Obligations of TITLE I Obligations of BOOK IV Obligations and Contracts of the Civil Code of the Philippines (Republic Act No. 386).

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Reviewed by the Intellegal Legal Team for currency against amending laws and Supreme Court jurisprudence.

Research aid — not legal advice. Verify the current text against the Official Gazette. Provisions may have been amended or repealed. Using this page creates no attorney-client relationship. For legal advice, consult a Philippine lawyer.