Kinds of compensation
The following are kinds of compensation:
2. As to cause:
1. As to extent:
a. Total - when both obligations are of the same amount and are entirely extinguished[1]; orb. Partial - when the two obligations are of different amounts and a balance remains.[2]
2. As to cause:a. Legal - takes place by operation of law from the moment all requisites are present even without the knowledge of both parties[3][4];b. Voluntary - takes place when parties who are mutually creditors and debtors of each other agree to compensate their respective obligations even though one of the requisites of compensation may be lacking[5];c. Judicial - by judicial decree[6]; andd. Facultative - can only be set up at the option of a creditor, when legal compensation cannot take place because some legal requisites in favor of the creditor are lacking.
[1] Article 1281, Civil Code.
[2] Id.
[3] Article 1279, Civil Code.
[4] Article 1290, Civil Code.
[5] Article 1282, Civil Code.
[6] Article 1283, Civil Code.
