Compensation is the simultaneous extinction of reciprocal obligations between two persons. It takes place, subject to being invoked, in due proportion, on the date when its conditions are met.
Subject to the provisions of the following sub-section, set-off occurs only between two obligations which are fungible, certain, liquid and due. Obligations for sums of money, even in different currencies, are fungible, provided they are convertible, or those which have as their object a quantity of things of the same kind.
Claims that cannot be seized and obligations to return a deposit, a loan for use or a thing of which the owner has been unjustly deprived are only compensable if the creditor consents.
The grace period does not preclude compensation.
If there are several compensable debts, the rules for charging payments are transposable.
A debtor who has taken unreserved note of the assignment of the claim may not set up against the assignee the set-off that he could have set up against the assignor.
The surety may set off what the creditor owes to the principal debtor. A joint and several debtor may rely on set-off of what the creditor owes to one of his co-obligors to have the latter’s divided share deducted from the total debt.
Compensation is without prejudice to rights acquired by third parties.
Set-off may be ordered by a court, even if one of the obligations, although certain, is not yet liquid or due. Unless otherwise decided, the set-off takes effect on the date of the decision.
The judge may not refuse the set-off of related debts on the sole ground that one of the obligations would not be liquid or due. In this case, the set-off is deemed to have occurred on the day on which the first of them became due. In the same case, the acquisition of rights by a third party in one of the obligations does not prevent its debtor from opposing…
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is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
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is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
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